Chinese Tungsten Prices Were in the Downward Trend in Early June

Details: Category: Tungsten's News; Published on Monday, 17 June 2019 18:56

Analysis of latest tungsten market from Chinatungsten Online

Chinese tungsten prices were in the downward trend in the week ended on Friday June 14 as the expected fundamental recovery cannot relieve pressures of weak demand and capital shortage. Mainstream tungsten product prices tended to decline to the level of cost.

Recently, member enterprises in China Tungsten Association and APT smelting factories in Ganzhou have gradually announced to cut output, which released good signs for the market. In addition, affected by the rapid surge in rare earth products under the Sino-us trade dispute, investors have more confidence in late tungsten market. Tungsten-related stock prices were up.

But contrary to it, the prices in spot tungsten market continued to fall. Firstly, due to the sluggish performance of the demand side, the recent manufacturing PMI index and tungsten downstream automobile industry production and sales dropped slightly, reflecting weak consumption of terminal customers. Secondly, the trade contradiction between China and America was constantly escalating, which is unfavorable to the downstream alloy industry. Thirdly, owing to the deficiencies of smelting technology in domestic tungsten industry, the market pays less attention to the value of tungsten strategic resources; Fourthly, the reduction of new offers of large enterprises and decreased purchase orders have aggravated market bearishness. Finally, APT smelting factories face great risks of product under the worry for inventories in Fanya Metal.

On the whole, tungsten confidence seems difficult to recover in the short term considering deadlocked supply and demand, and capital shortage. Traders slowed down the pace of replenishing their stocks; transaction still remained at a low level. This week, market participants need to follow domestic policy, international trade talks and adjusted pattern of supply and demand after production cuts.

Prices of tungsten products on Jun. 17, 2019

tungsten powder price image