Long-term Negotiated Price Edged Lower, Sapping Tungsten Market Confidence

Analysis of latest tungsten market in China from Chinatungsten Online: Tungsten market keeps quite in the first trading day after the holiday. The market shows no favorable factors, upstream and downstream enterprises are in a stalemate, and most traders are waiting for new long-term negotiated price from large enterprises.

Yesterday, Ganzhou Tungsten Industry Association released tungsten products quotation in October: wolframite concentrate fell by $2,325 per tonne to $16,279 per tonne; APT was $284 per tonne, lowering by $31.5 per tonne; medium particle tungsten powder was $40.6 per kilogram, dropping by $3.57 per kilogram. Besides, the long-term negotiated price for first half of October also came out, from ZhangYuan Tungsten. Wolframite concentrate quoted at $16,279 per tonne, lowering by $775 per tonne compared with the second half of September; scheelite concentrate was $16,046 per tonne, falling by $775 per tonne; APT was $284 per mtu, dropping by $14 per mtu.

The decline of the guidance price is as expected, so there have not panic in the market. Meanwhile, raw material enterprises are expecting the coming of Silver October. Besides, the 19th National Congress is around the corner, the growing important environmental protection will be placed on the agenda. As the news and policies are full of uncertainties, tungsten market will be cloudy and price between buyers and sellers is hard to unify.

According to the statistics yesterday, wolframite concentrate was traded at $16,279 per tonne, with 20 tonnes trading volume. Though there have simple inquiry for tungsten carbide, APT and other products, actual transactions are less. At present, downstream enterprises try to force price down, upstream manufacturers remain their earlier quotation and most trades are done with contracts. 

Comprehensive analysis: The current sentiment in the raw material market is conservative. Tight supply in raw material is still exists, but processing enterprises are purchasing according to orders, so trade finance has not entered the market temporarily. Most large tungsten enterprises are bearish on the latter market. Under the circumstances, tungsten price may maintain weak adjustment in the short term, so enterprises need to be treated with caution.

Price of tungsten products on Oct. 10, 2017

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