Negative Factors Affect Chinese Tungsten Market in July

Analysis of latest tungsten market from ChinaTungsten Online

Chinese tungsten prices have been declined for nearly one month, which raises sellers’ resistance psychology for low prices. Most purchasers try to force prices down while sellers are reluctant to sell at the level. Therefore, trading volumes are thin. Without supports from supply and capital sides, tungsten market is weak at present.

There are four negative factors affecting Chinese tungsten market in July:

First, sustained high temperature in summer and Mei-yu weather decline operating rate of downstream factories, resulting in weak consumption for tungsten raw materials.

Second, APT smelting factories restart working gradually and supply of spot goods increases. But terminal demand does not improve. Imbalanced supply and demand emerges.

Third, insiders become more cautious due to Sino-US trade friction and the yuan-dollar exchange rate falling below 6.8.

Finally, the guide prices from Ganzhou Tungsten Association and large tungsten enterprises both lower than before, weakening market confidence.

A new round of Chinese environmental protection inspection will soon be implemented. ChinaTungsten Online forecasts that tungsten prices may rise again.

Prices of tungsten products on Jul. 26, 2018

Picture of tungsten powder

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