China’s Xianglu Tungsten Stabilized Long-term Contract Prices for the First Half of July

Analysis of latest tungsten market from Chinatungsten Online

China’s ferro tungsten and tungsten powder prices stabilize in the middle of July under the background of high inflation and high cost. Although smelting factories reduce or stop production for equipment maintenance to ease part of inventory pressure and price inversion pressure, the short-term market is expected to be quiet and trading activity will be low. 

China’s Xianglu Tungsten stabilized their long-term contract prices for the first half of this month; 55% black tungsten concentrate was quoted at %16,615.4/ton; 55% scheelite concentrate was quoted at $16,461.5/ton and APT was quoted at $292.0/mtu. 

In the tungsten concentrate market, due to the cost pressure under high inflation and the non-renewable strategic resources, the holders are not willing to negotiate for profit. Customers generally make purchasing plans according to their needs.

In the APT market, the upstream and downstream of the industry chain continue to compete, and the processing costs of raw and auxiliary materials supported by tight energy are superimposed, therefore, manufacturers generally have strong rised mentality, waiting for the release of demand.

In the tungsten powder market, domestic growth stabilization measures continue to promote consumption in infrastructure investment, automobile industry and equipment manufacturing. Industry players have positive expectations for domestic consumption in the second half of the year. However, overseas tightening monetary measures have significantly suppressed the overall consumer market. The demand is limited and the market is quiet.

On the macro level, the shortage of energy supply caused by the conflict between Russia and Ukraine is still severe. Although domestic measures to ensure supply and stabilize prices are conducive to market stability, the penetration of international trade pressures has led to challenges on the cost and demand sides of the tungsten product industry. The "Global Trade Update" report released by the United Nations Conference on Trade and Development (UNCTAD) predicts that price increases caused by the Russian-Ukrainian conflict will begin to affect international trade. Global trade volume reached a record $7.7 trillion in the first quarter of 2022, an increase of about $1 trillion year-on-year. The industry expects the growth rate to have slowed in the second quarter.

Prices of tungsten products on July 13, 2022

Picture of tungsten acid 

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