Supply of Tungsten Concentrate Remains Tight

Analysis of latest tungsten market in China from Chinatungsten Online: It was reported yesterday that downstream enquiry increased. Affected by that, traders keep strong mentality, and expectation for the shortage of raw materials also turns optimistic. 

However, the demand shows no substantial recovery, actual transactions remain less. It comes to conclusion that it’s too early to make adjustment of upward trend of tungsten prices that start showing signs of stabilization.

Quotation for tungsten products rises slightly. APT quotes at $276.8 per mtu to $280 per mtu, up $1.75 per mtu from the previous trading day; wolframite concentrate quotes at $15,814 per tonne to $16,124 per tonne, unchanged from the previous trading day. 

High-grade sources are still tight in the tungsten concentrate market, offering enough support to the supply side. Future holds a strong bullish attitude of market participants but market price falls short of the expectation, most sellers are reluctant to sell, looking on the game between supply and demand.

In APT market, costs and stocks strengthen manufacturers’ high product prices attitude. Meanwhile, the news of increased enquiry also makes the quotation of APT firm. While the terminal demand is weak, and enterprises are not willing to purchase, APT price will not rebound lately. 

Poor sales of alloy products restrict the demand for tungsten powder. Besides, terminal customers demanding lower prices, enterprises waiting and delaying purchases, and no favorable news showing under the deadlocked raw materials quotation. As a result, tungsten powder enterprises are caught in heavy wait-and-see atmosphere, with smooth quote.

Comprehensive analysis: Tight supply of raw materials is likely to boost tungsten price and the whole market is expected to come back the normal trend. What needs to be concerned about is whether downstream demand will support the rise of raw material and the attitude of large enterprises after price rises. Chinatungsten Online forecasts short-term tungsten price will show upward trend. In order to avoid risks, enterprises are recommended to purchase according to orders.

Price of tungsten products on Nov. 10, 2017

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