Short Supply of Tungsten Concentrate, But Weak Demand

Analysis of latest tungsten market in China from Chinatungsten Online: Market confidence is boosted by the rise in guide prices released by large enterprise on Monday, and domestic mainstream tungsten product prices continue to keep upward trend. However, tight supply of raw materials and weak demand still trouble market participants. As a result, tungsten market is in a stalemate on the whole and actual trading remains low.

The quotation for tungsten products remains unchanged. Wolframite concentrate quotes at $16,899-17,209/t, equal to $0.24/kg without taxes; scheelite concentrate quotes at $16,589-16,899/t, equal to $0.23/kg without taxes; quotation for APT is $292.6-296/mtu; price of medium particle tungsten carbide is $39.8-40.6/kg.

pure tungsten granular picture

In the tungsten concentrate market, the domestic environmental protection strict increases the possibility of continuous decline of tungsten ore production. And the businessman rised mentality is stronger. So enterprises will face source nervous and the quotation of miners may gradually rise. The quotation for 65%wolframite concentrate has broken though $17,054 per tonne. 

Weak demand is unchanged in the APT market, smelting enterprises have no strong replenishment requirements and market mentality shows signs of stalemate. Considering the continuous shortage of raw materials, APT price may rise following the pace of market. 

High price of raw materials is unacceptable for terminal customers and processing enterprises is producing according their orders in the tungsten powder market. As the rise of tungsten product prices does not get effective support from the demand, tungsten powder enterprises increase their risk aversion with stable quotation.

Comprehensive analysis: the tight supply of raw materials will continue in the short term, stocks in the market have little effect on prices and market confidence will be more and more important. From the view of raw materials, tungsten price is likely to rise. Besides, movements in the trading market would affect market mentality, so enterprises should remain cautious.

Price of tungsten products on Nov. 22, 2017

tungsten products price picture

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