Continuous Weak Trading Activity in China Tungsten Market

Analysis of latest tungsten market from ChinaTungsten Online

Chinese tungsten prices continued downward trend in September, but start to show stability at the end of this month as market mentality has differentiated.

For the supply side, sellers have not great pressure of inventories under environmental protection, despite transactions are hardly concluded. There have good mentality in the raw material market, supporting tungsten ore prices. Tungsten concentrate prices hover around $15,384.6/t and show signs of rebound. The stability in tungsten forecast prices of large enterprises also makes sellers reluctant to sell at low prices.

For the demand side, downstream factories are not active in trading and the whole trading volumes remain thin. The production of tungsten carbide and alloy products in China’s Zhuzhou, Sichuan and other regions was cut, some even up to 50 percent and orders reduced by 20 to 30 percent, according to the data from Chingtungsten Online. 

Foreign enterprises’ productions are relatively normal, but new increased orders also reduce, according to the data from International Tungsten Association meeting. Downstream manufacturers will not follow up the pace of tungsten raw material market that tries to rise prices. 

“Although market hype may push tungsten raw material prices higher in the short term, the strength is insufficient and market prices are likely to fall again,” a insider said.

On the whole, market demand will continue its weakness, but good atmosphere in raw material side would boost tungsten ore prices. With the approaching of National Day holiday, traders remain weak trading activity.

Prices of tungsten products on Oct. 08, 2018

Picture of tungsten powder

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