China’s Tungsten Concentrate Price Continues to Strengthen Amid Tight Supply

Analysis of latest tungsten market from Chinatungsten Online

China’s tungsten concentrate price continues to strengthen amid tight supply from mining companies. The price increases for the raw material have also triggered higher offers for ammonium paratungstate (APT) but downstream tungsten powder and alloy consumers are resisting them amid weak economic conditions, resulting in a stalemate.

Manufacturers and traders generally believe that in addition to the extremely small probability of a sharp decline in demand, the current tungsten product market has fewer incentives to fall. From the perspective of tightening environmental protection policies, the resonance effect of the continuous rise in commodity prices and the macroeconomic fiscal and tax stimulus policies, the cost in the future will remain high after a substantial increase, and the supply side will become more controllable as the industry concentration increases. In the post-epidemic era, manufacturing consumption is expected to pick up, and the steady tungsten market dominated by raw materials will continue to be maintained.

However, the consumption of back-end consumers cannot keep up with the increase in raw material costs. Judging from the feedback of the shrinking order of enterprises, the uncertainty on the demand side has caused merchants to remain cautious in replenishment and stocking, especially the epidemic has repeatedly disturbed the export market. The demand side will be affected as long as the epidemic continues to spread. 

Prices of tungsten products on August 13, 2021

Picture of tungsten ore 

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