China’s Zhangyuan Tungsten Stabilized New Offers for August

Analysis of latest tungsten market from Chinatungsten Online

The tungsten powder and tungsten carbide powder prices continue to maintain stability in the Chinese tungsten market. The new offers for the second half of August from large tungsten companies stabilized, giving the market a stable signal. The market now still features difficult sales in high-prices and purchasing in low-price materials. 

On Tuesday, China’s Zhangyuan Tungsten released its new offers for the second half of this month: wolframite concentrate (WO3≥55%) was quoted at $10,703.20/t; scheelite concentrate (WO3≥55%) was quoted at $10,468.80/t; ammonium paratungstate (APT) was quoted at $191.60/mtu, unchanged from last time. 

For the policy side, some companies issued a notice saying that in order to ensure the blue sky and white clouds in the 70th anniversary of the National Day military parade, it is expected that all production enterprises in the north of the Yellow River will stop production and reduce emissions from September 1. Although relevant departments of the state have not yet issued specific measures to stop or limit production, the market expected to have a large-scale production limit before the National Day, which may further tighten the supply and promote the adjustment of tungsten prices. 

About the Fanya stockpiles, the tungsten market is focusing on the flow of 431.95 tons of tungsten and 29,651 tons of ammonium paratungstate after related antimony and rare earth products were all auctioned last week. Some people worried that current weak balance of supply and demand in the industry is hard to react the impact of Fanya stocks entering the market. However, some operators also indicated that due to the large volume of stocks involved and the current low market prices, it is expected tungsten products involved in the Fanya case will not be able to flow into the market at one time, and with the clearness of the disposal plan, market risks and concerns may gradually be digested, which is actually good for industry adjustment and bottoming rebound.

On the teleconference held by CITIC Securities on August 8, Qiu Wanyi, secretary general of Ganzhou Tungsten Association, pointed out that one of the reasons for the recent decline in tungsten prices is the Fanya APT inventory. However, experts pointed out that the inventory itself does not need to worry too much, because the market can consume it within three months, and the source price will be within a reasonable range.

Prices of tungsten products on Aug. 22, 2019

Picture of tungsten powder 

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