Price Trend of Tungsten Products in May 2022

Analysis of latest tungsten market from Chinatungsten Online

China tungsten price was in the downward trend in May, and the average tungsten forecast prices from Ganzou Tungsten Association and long-term contract prices from state-owned tungsten companies also declined, owing to the impact of the epidemic in Shanghai, Jilin and other places on the domestic economy. 

The consumption of tungsten products in manufacturing industries such as automobiles and equipment also suffered, which affected the focus of tungsten prices.

Since mid-May, as China’s domestic COVID responses have gradually become effective, Shanghai and other places have resumed work and production in an orderly manner, and major domestic transportation hubs have resumed smooth operation. The market confidence of the tungsten industry has also been established, and the price decline has become slowly. Some of raw material offers tried to make a probe, but they have not yet been implemented on the transaction orders. Because the continuous weakness of the cobalt powder market has hit the confidence of consumption and price increases at the cemented carbide side, the transmission of the tungsten industry chain is still blocked.

Looking forward to the market outlook, the industry's expectations for a recovery in demand after June are generally positive. On the one hand, the full resumption of work and production in Shanghai is expected to be around from June to late June. The epidemic situation in Beijing and other places is also gradually improving, which is expected to be favorable for the production and logistics of domestic tungsten product enterprises and the downstream terminal industrial manufacturing demand. On the other hand, the recovery of the national economy will be accelerated in the second half of the year, and economic stabilization policies, including real estate regulation, infrastructure investment, and fiscal measures, will be conducive to the release of demand for tungsten products in the second half of the year.

On the macro side, first, global inflation is still in a rising range. The tightening measures of major economies represented by the United States are difficult to effectively balance the risk of inflationary pressure and economic recession. Therefore, Chinatungsten is not going to judge the impact of such uncertain risks for the time being. However, judging from the nine increases in oil prices in the first half of the year, the international market is still facing the pressure of supply chain disruptions such as energy, and the soaring prices caused by inflation will increase the cost pressure of the tungsten products industry. Second, the situation in Russia and Ukraine may ease in the second half of the year. As Russia's importance in energy is difficult to replace, especially for Europe, the economic blow of seesaw battle and supply chain disruption will be huge. If such geopolitical tensions remain unresolved, shortages of oil, gas, electricity and food will devastate economies including and not only in Europe.

Price trend of tungsten raw materials in May 2022

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