Dominant Tight Supply, Strong Tungsten Price

As a new round of Central Environmental Protection Inspectorate will be dispatched, some provinces and cities began making preparations and the mining and smelting factories maintain low operating rates.

The tight supply of raw materials is a dominate factor, supporting tungsten prices continue to be strong.

In terms of tungsten concentrate, stockist continues to offer higher quotation as a result of less mine output. Currently, 65% tungsten concentrate’s price in market is about RMB 86,000-88,000/ton.

Since July, positive prices offered by institutions and large tungsten enterprises continue to guide the APT market to sustain steady growth. Smelters became more unwilling to sell goods. Currently, the highest APT price in market has reached RMB 135,000/ton.

The purchasing and short covering for the upstream raw materials became more difficult. Supported by previous long-term order and high cost, manufacturers offer higher quotation regardless of poor downstream order. Market price of tungsten powder presently is about RMB 205-208/kg.

Overall, influenced by the tighter environmental regulation, low operating rate and increased cost of raw materials, the market supply and demand are tight and tungsten market is expected to maintain upward trend. However the demand fluctuation caused by high prices should be pay attention to continuously.

Price of tungsten products on Jul. 27, 2017

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