Chinese Tungsten Market: Tax Law on Environmental Protection will Be Implemented in 2018

Analysis of latest tungsten market in China from Chinatungsten Online: Chinese tungsten market continues to be stable. Lower quotations in the previous stage start to be close to market high point, though high raw material price without effective support. Under the deadlocked supply and demand, high production costs would be the main factor supporting tungsten price.

At the beginning of 2018, the first tax law on environmental protection in China will be formally implemented. It is understood that most of provinces have identified specific taxes, and the preparation work is also undertaken. The introduction of environmental tax will undoubtedly increase the investment in environmental protection and push enterprises to upgrade. With the support of increasing cost and tight supply, sellers are optimistic about the market outlook.  

In APT market, raw material supply is less, profits of smelting plants are squeezed by high costs, and low-price goods cannot be got. At the same time, downstream customers remain low enthusiasm in purchasing, limiting the space of price rise. Without obvious release of demand, APT price will stabilize.

Downstream alloy and products enterprises reduce their procurement plans, mainly purchasing according to orders. The limited demand in the downstream market controls the rise in price. Tungsten powder enterprises now are cautious and adjust their quotations with the help of high costs. At present, high grade tungsten powder is quoted at $41/kg.

On the whole, domestic tungsten market faces great pressure of demand. And with the influence of tight funds, the market will still be covered with heavy wait-and-see atmosphere. But the environmental policy encourages the expectation of rising market and the short-term tungsten price keeps stable.

Prices of tungsten products on Dec. 14, 2017

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