Chinese Tungsten Market Update and RMB Depreciation Impacts

Analysis of latest tungsten market from Chinatungsten Online

Chinese tungsten market continues to exhibit a tight supply-demand balance, with prices largely stagnant and trading activity driven by just-in-time procurement. 

Sellers largely maintain an optimistic outlook, awaiting price increases, while buyers are less proactive. In the short term, tungsten prices are more likely to rise than fall, with limited room for adjustment.

Exchange Rate Dynamics and Export Implications

According to The Economic Observer, UBS Wealth Management’s Chief Investment Office has revised its USD/CNY exchange rate forecasts upwards: 7.30 for December 2024; 7.40 for March 2025; 7.50 for June 2025, and 7.50 for September 2025.

The previous forecasts were 7.20, 7.00, 7.00, and 7.00, respectively. In the medium term, the risk of further RMB depreciation against the USD has increased, though it may unfold gradually over several stages.

Impacts of RMB Depreciation on Tungsten, Molybdenum, and Rare Earth Sectors

RM particularly those producing hard metal tools and other export-driven products, a weaker RMB can help boost export volumes and market share.

In the context of heightened global economic uncertainty, geopolitical tensions, and evolving tariff policies since Trump’s administration, the depreciation of the RMB appears to be driven by both proactive and reactive factors.

Strategic Outlook for the Tungsten-Molybdenum-Rare Earth Industries

The intertwined effects of tariffs and exchange rate policies amplify market uncertainties for key raw materials like tungsten, molybdenum, and rare earths. However, overall, the benefits of RMB depreciation are expected to outweigh the drawbacks.

Enterprises in these industries should closely monitor international economic conditions and exchange rate movements, adopt flexible strategies to mitigate and manage risks associated with currency volatility and sudden changes in market dynamics. This proactive approach will help safeguard operational stability and take advantage of potential export growth opportunities.

Prices of tungsten products on November 20, 2024

Picture of tungsten pin

Follow our WeChat to know the latest tungsten price, information and market analysis.

• < Prev
• Next >