Fanya Auctions Gave Momentum to Tungsten Prices After Years of Overhang

Analysis of latest tungsten market from Chinatungsten Online

On Tuesday September 17, China Molybdenum won the auction for the 28,336 tonnes of ammonium paratungstate (APT) – equivalent to around three months of Chinese output – that had been held by Fanya. The sale has given relief to the market, and some sources have suggested it could be enough to boost prices and improve the sentiment once market activity returns. 

The winning $463-million bid followed 135 rounds of bidding, according to official auction results posted on the Alibaba judicial online platform. China Molybdenum’s final bid was 820 million yuan higher than the opening amount.

After the end of the auction, tungsten concentrate prices rose to 80,000yuan/t, APT rose to 120000yuan/mtu and tungsten powder price climbed to 185yuan/t. The prices also showed signs of rise. Most traders were not certain about the space of rise in the short term, so some of them stopped quotation. However, whether the tungsten market would actually recover depends on the performance of demand and supply sides and how China Molybdenum to deal with the huge volume of stocks. 

Prices of tungsten products on Sep. 13, 2019

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Picture of tungsten powder 

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