China’s Labor Costs Will Increase the Pressure of Tungsten Enterprises

Analysis of latest tungsten market from Chinatungsten Online

The ammonium paratungstate (APT) and tungsten powder prices remain stable on October 26, 2021 because most participants hold cautious sentiment despite of strong rised mentality of raw materials. now the inquiry from domestic buyers or overseas buyers is limited on the whole.

Since the beginning of this year, the rapid spread of delta virus, tight energy supply, logistics constrain as well as the uncertainty of the US monetary policy has continued to affect global liquidity, increasing market concerns about continued inflation and rising prices. The recent increase in vegetable prices in many areas of China, even “more expensive than meat”, has attracted widespread attention. For tungsten companies, although the increase in product prices and rigid consumption have caused corporate profits to increase, future energy, environmental protection and labor costs will inevitably increase the production and operation pressure of tungsten enterprises. Whether back-end consumption can follow the recovery of the manufacturing economy as expected still requires long-term attention.

Uncertainty of the epidemic, delayed vaccination, supply chain disruption and inflationary pressures have hit consumption and factory output. Therefore, despite strong export demand, the International Monetary Fund (IMF) still sharply lowered its forecast for Asia’s economic growth prospects to 6.5 %, a decrease of 1.1 percentage points compared with the April forecast. At the same time, the IMF pointed out that any "untimely policy normalization or misunderstood policy communication" by the Fed may trigger large-scale capital outflows and rising borrowing costs in emerging Asian economies.

Prices of tungsten products on October 27, 2021

Picture of tungsten concentrate 

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