China Tungsten Price Remains Stable in Mid-July on Weak Market Demand

Analysis of latest tungsten market from Chinatungsten Online

At the beginning of the week, China tungsten price remains stable on the whole as the market is weak at both supply and demand sides. Affected by overseas uncertainties and the off-season effect of the market, spot transactions are low. 

In the short term, most insiders will mainly wait for the global inflation pressure and the domestic economic recovery. At the same time, they will pay attention to the long-term contract prices from large tungsten enterprises to be announced in the second half of this month. 

In the international market, tight energy and food supply have led to more severe inflationary pressures in major economies such as the United States and the Eurozone, and overseas economies and markets have been hit, inhibiting the downstream terminal demand for tungsten products. (1) The IMF predicts that the process of central banks continuing to raise interest rates to cool inflation may continue until 2023. (2) The EU Executive Committee lowered the economic forecast growth rate due to the huge pressure brought by rising energy and food prices in Russia. It is expected that the real GDP of the euro area will increase by 2.6% this year and 1.4% next year. (3) Germany, Europe's largest economy, is headed for recession due to falling natural gas supplies, a slump in the U.S. economy and other headwinds, shrinking by about 1% by 2023, Deutsche Bank said.

In the domestic market, with the improvement of the epidemic, the domestic logistics transportation network and the circulation of resources in the industrial chain are gradually restored, plus with the favorable policies such as China's economic stabilization and promotion fees, the tungsten market is expected to rebound after the off season. (1) According to preliminary calculations by the National Bureau of Statistics, the GDP in the first half of the year was 56,264.2 billion yuan, a year-on-year increase of 2.5% at constant prices. Based on the full-year target of 5.5%, it is expected that the Chinese market demand may increase in the second half of the year. (2) In the first half of the year, China's industrial economy was generally stable, with obvious features of marginal improvement. The added value of industrial enterprises above designated size increased by 3.4% year-on-year, of which June increased by 3.9% year-on-year. (3) Yi Gang, governor of the central bank, said that China's inflation is low and expectations remain stable. Affected by the epidemic and external shocks, the Chinese economy is facing certain downward pressure. The central bank will increase the implementation of a prudent monetary policy to provide stronger support for the real economy.

Prices of tungsten products on July 19, 2022

Picture of tungsten acid 

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