The Trend of China Tungsten Price in the First Half of 2022

Analysis of latest tungsten market from Chinatungsten Online

In the first half of 2022, China tungsten price generally showed an unstable tend featuring rising first and then falling. The industry was significantly disturbed by the epidemic, the conflict between Russia and Ukraine, as well as the global economic and financial situation.

In January, the overall supply of the market before the Lunar New Year was tight due to factors such as high electricity costs and pre-holiday maintenance, combined with the expectation of good economic growth in China, raw material suppliers had rised mentality. However, the consumption was relatively flat due to the uncertainty of the epidemic and inflation.

In February, the resource release of mines and smelting enterprises was relatively slow before the two sessions. At the same time, the outbreak of the conflict between Russia and Ukraine caused the risk of disruption of the global supply chain and the redemption crisis of international trade. The entry cost of the tungsten products industry was high and the demand was weak, and thus the market showed a small V-shaped trend. Global inflationary pressures have led to rising prices and other costs, and geopolitical conflicts and overseas economic recession pressures have affected the consumer market.

In March, the escalation of the conflict between Russia and Ukraine led to serious problems in the global energy and food supply chain, which stimulated the rise in the prices of bulk commodities and raw and auxiliary materials. The prices of tungsten raw materials and cemented carbides and other products rose passively due to cost pressures. The actual domestic market supply and demand momentum was limited, and foreign trade transactions faced certain challenges due to the sanctions imposed on Russia by major Western economies.

In April, China’s domestic epidemic spread in many places hit the consumer market. After Shanghai was fully closed at the end of March, the demand for cemented carbide in the fields of automobiles and integrated circuits cooled down significantly. The domestic logistics and transportation in Jiangsu, Zhejiang and Shanghai were also stagnant, and the price of tungsten products was in the downward trend.

In May, the large-scale shutdown of industries such as automobiles and the blockage of major transportation hubs caused by the epidemic began to be gradually resolved. However, the resumption of work and production needs to be gradual, and the demand for tungsten market is still under pressure, superimposed by the demand for mobile phones and ternary materials, the decline in cobalt prices caused by the downturn, the overall weak consumer sentiment in the cemented carbide field, affecting tungsten prices to continue to be under pressure. 

In June, the domestic epidemic prevention and control situation gradually improved, and measures to stabilize growth stimulated the consumption of automobiles, infrastructure and real estate in the downstream of the industrial chain, and the bottom-building sentiment on the tungsten raw material side increased. However, the high temperature and rainy weather had certain resistance to the release of market demand. In addition, overseas COVID-19, global inflation risk and economic recession led by the epidemic and geopolitical conflicts are on the rise. The recent interest rate hikes by major overseas economies have put pressure on the commodity market. The consumer sentiment in the downstream industry of tungsten products remains cautious, and the inversion risk faced by intermediate smelters has intensified. The tungsten market continued to keep quiet.  

Prices of tungsten products on July 1, 2022

Picture of tungsten trioxide 

Follow our WeChat to know the latest tungsten price, information and market analysis.

• < Prev
• Next >