Demand for Tungsten Weakened Due to Negative Impact of China-US Trade Friction

Details: Category: Tungsten's News; Published on Friday, 12 July 2019 20:03

Analysis of latest tungsten market from Chinatungsten Online

Due to the sluggish global economic recovery and the negative impact of China-US trade friction, demand for tungsten has weakened and prices have been forced down. The overall revenue of the industry has declined in China, according to a statement released by the China Tungsten Association (CTIA).

In the tungsten concentrate market, the trading volumes in the spot market are hard to increase, plus with the influence of traditional off season, market confidence is weakened and prices hover around $10,937.5/t. The second round of Chinese environmental checks will soon be launched and smelting factories also keep the operating rate at a relatively low level for a very long time, so spot resources are actual limited at present. Manufacturing enterprises with cautious sentiment sell low-price resources for small profits but quick turnover.

A group of ammonium metatungstate(APT) producers issued a proposal in Ganzhou, East China's Jiangxi Province, unanimously agreeing to suspend or reduce production from June, with at least 15-day production suspensions or output cuts of more than 30 percent.

The supply of APT is in shortage but the persistent weakness in the demand side keep worrying people. It was reported that market inquiry has increased recently and manufacturers tend to stabilize the market. Some traders think the imbalanced relationship between supply and demand may be adjusted considering the start-up growth rate may be lower than the consumption growth rate in the late market rebound.

Prices of tungsten products on Jul. 12, 2019

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