Shortage of Energy and Firm Price of Raw Material Cobalt Increased Tungsten Production Cost

Analysis of latest tungsten market from Chinatungsten Online

Ferro tungsten and tungsten carbide powder prices in the Chinese market maintain stability but show signs of rise affected by the tension between Russia and Ukraine. However, spot transactions were still suppressed by the deadlocked supply and demand. 

In the tungsten concentrate market, based on environmental protection pressure and strategic resource value perception, the holders of the tungsten concentrate have a strong sentiment towards the market overall, and there is less outflow of resources at low levels in the market. 

In the APT market, under the pressure of global inflation, the cost pressure of smelting plants is significant, including the high prices of raw and auxiliary materials for processing and electricity and other commodities. Recently, the price of APT has a slight upward trend. 

In the tungsten powder market, boosted by the news of the price increase of alloy products and a new round of stocking cycle, the confidence of smelters is shored. The recent volume and price performance of cemented carbide is acceptable. On the one hand, due to the shortage of resources caused by local conflicts overseas, part of the demand has been transferred to China; on the other hand, due to the shortage of energy and the firm price of raw material cobalt, the cost pressure of enterprises has increased.

In terms of news, the Federal Reserve raised interest rates by 25 basis points as expected to the benchmark interest rate in the range of 0.25%-0.5%, and is expected to raise interest rates six times during the year. The return to normalization of US dollar measures will help ease the pressure of global stagflation, but the conflict between Russia and Ukraine still brings greater uncertainty to the world economic and trade environment.

Prices of tungsten products on March 18, 2022

Picture of yellow tungsten oxide 

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