High Tungsten Concentrate Prices Could Drive Business from China

Ferro-tungsten and ammonium paratungstate (APT) production could move away from China in the long term if tungsten concentrate prices there continue to rise, sources told Metal Bulletin

“In the future, most demand will be covered outside China. The biggest customers in France, Austria and Germany will go elsewhere.” a trader told Metal Bulletin.

“The Chinese will be able to sell less and less on the European platform. It seems the only chance China has is to go more downstream,” he added.

Both ferro-tungsten and APT prices in Europe have risen steadily since the beginning of the year, as concentrate prices in China have soared as high as 158,000 yuan ($25,604) per tonne, from 150,000 yuan per tonne just a month previously.

However, ferro-tungsten prices have begun to lose ground in recent days, down from highs of $50 per kg to a range of $47.50-48.50 per kg, and market participants have suggested APT prices – now at $410-425 per mtu in Europe – could follow suit.

“I’ve spoken to a few partners [in China] and they’re definitely starting to say that if you really want business, you have to look at  the price,” the trader said.

“I’m expecting the price to fall dramatically [after the European summer]. Right now, the demand is low because customers are on holiday until the end of August.”

Concentrate prices are also slightly down in Europe, according to a producer, which could help to stabilise the APT price.

“I’m not sure whether traders want to sell off material. I think some of them are expecting prices to drop, and maybe that’s why concentrate is quite cheap in Europe,” he added.

The tungsten market in general has been quiet, a second trader said, and only small tonnages have been changing hands.

“It’s more 5-10 tonne lots now. People are happy to clear up positions with odd lots,” she said.

Metal Bulletin’s European quotations for ferro-tungsten and APT remained unchanged on Wednesday August 6, at $47.50-48.50 per kg and $410-425 per mtu, respectively.


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