China’s APT Price Keeps Strong on High Cost of Energy and Raw Materials

Analysis of latest tungsten market from Chinatungsten Online

China’s domestic tungsten price mainly keeps stable in the second half of March, 2022. Affected by the tension in overseas supply chains, the general increase in global commodity prices and the support of a new round of long-term contract prices from large tungsten companies, participants have a strong willingness to support the market. 

However, market transactions still face the pressure from repeated epidemics and geographical conflicts, and the tungsten product market is expected to continue to be caught in wait-and-see atmosphere in the short term.

In the tungsten concentrate market, the second round of the sixth batch of central ecological and environmental protection inspectors has been fully launched. The mining and smelting costs have increased due to environmental protection factors and inflationary pressures. Holders and intermediate traders have a strong willingness to support the market. The tentative offers are increased to $19,354.8/ton, but the transaction is difficult to conclude.

In the APT market, the pressure on the cost of energy and raw materials supports the APT price at $331.8/mt. Smelters are not willing to negotiate for profit, but downstream users are also limited in their enthusiasm for receiving goods. Some industry players believe that overseas geopolitical pressure may promote some demand transferring to China, but the current market transaction data is still relatively conservative, and the market is more rational and cautious.

In the tungsten powder market, the offers of smelting companies are stalemate at around $45.0/kg. Recently, the back-end cemented carbide companies ushered in a new round of price increases, which has boosted the mentality of the tungsten raw material side. However, there are few transactions concluded in the market. The irrational rise in the prices of raw and auxiliary materials caused by the epidemic and geopolitical conflicts has affected the consumption enthusiasm of downstream terminals, and the overall market trading is more cautious.

Prices of tungsten products on March 24, 2022

Picture of tungsten ore 

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