Supply in the APT Market Is Constrained Due to High Temperature

Analysis of latest tungsten market from Chinatungsten Online

The ferro tungsten and tungsten carbide powder prices are unchanged from the previous trading day with the support of tight raw material supply and strong cost side. 

Recently, the power shortage due to high temperature has continued to affect the production of tungsten enterprises, but the sluggish demand restrains the industry’s bullish for the outlook. China’s Central Meteorological Observatory predicts that the highest temperature in parts of southern Shaanxi, eastern Sichuan, Chongqing, western and southeastern Hubei and other places will reach above 40 degrees Celsius during the day.

In the tungsten concentrate market, mining and smelting enterprises are reluctant to sell their products as they would like to stabilize the market price. The current price of high-grade resources has hit $18,461.5/ton due to the significant cost pressure in the market under the background of high inflation and strict environmental protection. In addition, miners are holding their goods and looking forward to rising, which drove the overall market offer.

In the APT market, the firming of the raw material market drove the market focus higher. APT’s export price reached the $312.9/mtu mark. However, the market transaction continued to reply on actual demand. Buyers are cautious in receiving goods, and the market transaction volume was mediocre. Actual transaction prices mainly refer to long-term contract prices released from listed tungsten companies.

In the tungsten powder market, manufacturers also raised their offers to $41.5/kg even through it is hard to concluded deals at the level. The consumption in the market is still restrained by the high temperature and off season, and the recent power cuts in some areas have intensified the pressure on cost and supply to a certain extent.

Prices of tungsten products on August 19, 2022

Picture of tungsten ore 

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