The Long-term Negotiated Price Edged Higher, Boosting Market Confidence

Analysis of latest tungsten market in China from Chinatungsten Online：Last Friday, the long-term negotiated price for the second half of October from Zhangyuan Tungsten was released. Wolframite concentrate quoted at $16,046 per tonne, down $232 per tonne compared with the first half of this month; scheelite concentrate lowered $232 per tonne to $15,814 per tonne; APT lowered $310 per tonne to $280 per mtu. Although the guidance price edges lowers on the whole, slightly higher than the actual transaction of the spot market. It also gives some support for bulk single price.

Domestic tungsten market slowed down the pace of decline last week, but the price is still hard to rebound. The production in some mines was limited due to the 19th National Congress, which enhanced market confidence. But the weakness in the demand changed businesses' willingness to purchase. Thin market is difficult to support the market at present. The tungsten price without the support of large purchase orders and large amount of trade funds remains downward trend.

Affected by the decline of the long-term negotiated price, low-price trading in the weekend and reduced some transaction prices were closed to large enterprises’ guidance price. Though it is reported that the supply in tungsten concentrate market is tight, the actual transaction price shows no signs of recovery. The mainstream trading price of APT fell below $280 per mtu amid $279 per mtu in the weekend.

Comprehensive analysis: Tungsten market is expected to stabilize affected by the long-term negotiated price, but the real stabilization needs support. There are different views on the latter market. Raw material price keeps declining, so most buyers believe it is still have room to decline. However, sellers think tungsten price will not decline again as the market is returning to rational.

Price of tungsten products on Oct. 24, 2017

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