Jiangxi Tungsten Concentrate Production Affected by Heavy Rains

According to CCTV news reports, since July 12, Jiangxi has been suffering from continuous rainfall, resulting in floods in seven districts and cities and 30 counties. Heavy rainfall has hit many parts of Jiangxi province, as one of the main tungsten concentrate producer in China. Productions of tungsten concentrate in Jiangxi have reduced by about 20pct. Jiangxi tungsten’s concentrate costs have raised and supply is expected to be tighter next two months.

At the same time, due to oversupply, the price of domestic concentrates fell by 20,000 Yuan/ton ($2,910 / t) in just one month. The reduction in production did not stop prices falling. APT capacity in China has reached 220,000 tons/year, while the apparent demand is only 100,000 tons/year.

However, according to the data, domestic cemented carbide production is expected to remain stable in 2019, with a production of 8,300 tons in the first quarter of 2019, down 3.5pct from the same period last year. China produced 38,500 tons of cemented carbide in 2018.

Cutting tool demand that is expected to decline tungsten consumption by 30 percent this year, as the slower economy growth and US-Sino trade dispute. Exports of cutting tools fell 10 percent in the first quarter of 2019 from a year earlier.

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