Tungsten Prices Remain Weak Adjustment as the Market Lacks Effective Support

Analysis of latest tungsten market in China from Chinatungsten Online: The tungsten market is quiet in the first half of October, but the frequent environmental protection policy in major producing areas is stimulating the market. Some sellers believe that the price decline in recent months only is a phased adjustment. With the stricter control of environmental protection policy, tungsten prices are expected to rise.

Under the stabilization mentality in mainstream markets, transactions at low price is gradually reduced while trading volumes are still less. Before the clear market trend, purchase volume will not increase. Quotation for mainstream tungsten products stabilize. Wolframite concentrate ranges from $16,124 per tonne to $16,434 per tonne; scheelite concentrate ranges from $15,813 per tonne to $16,124 per tonne; APT quotes at $280 per mtu to $284 per mtu.

Raw material supply tends to be tight as some mines stop production to undergo repair, thus businesses are more willing to sell. But the demand in customers has not been released, production and purchase in downstream enterprises are still restrained, thus raw material prices have not enough upward momentum. In the short term, the quotation will stabilize. Quotation for 65% wolframite concentrates ranges between $15,824 per tonne and $16,124 per tonne.

The stability in raw material market, low purchasing enquiry from downstream enterprises, coupled with no favorable news from large enterprises, APT market is caught in heavy wait-and-see atmosphere. Besides, smelters are difficult to resupply their stocks, slight trade increases capital pressure of manufacturers, and enterprises face high production cost. The fierce competition among manufacturers makes APT quotation in a chaos.

In the tungsten powder market, the demand is released slowly, transactions are mainly done with long-term customer, and orders on the whole is less. The tight supply of raw material gives some supports for the market, but powder enterprises are reluctant to sell, so tungsten powder price will remain weak adjustment briefly.

Comprehensive analysis: Short-term tungsten market will maintain stability, but if the market continues to be quite, worry may appear again, thus the late matter trend is hard to forecast. Chinatugnsten Online expects that although the mainstream tungsten price stabilizes, it will continue to maintain weak adjustment as the market has no effective support.

Price of tungsten products on Oct. 18, 2017

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