China’s Tungsten Powder Market Stabilizes Due to Power Cuts in Sichuan

Analysis of latest tungsten market from Chinatungsten Online

Chinese tungsten powder and ammonium paratungstate (APT) prices remain stable on August 23, 2022 as the whole market trading is not active under the high-temperature weather. 

Recently, the domestic power supply has been relatively severe, which has led to an increase in energy cost pressure in the industry. At the same time, the production at the alloy end has been affected by the power curtailment measures in some regions. The overall market liquidity has slowed down, and traders have divergent views on the market outlook. Transactions remain cautious and negotiable as needed.

In the tungsten concentrate market, traders' sentiment on profit-making shipments has increased, but deals concluded at above $18,461.5/ton are limited. The supply in the market is limited most participants took a watchful stance. 

In the APT market, smelters remain cautious in their purchase and sales, and increase the cost of replenishing raw material resources. Market pressure still exists and most offers hover around $312.9/mtu. 

In the tungsten powder market, the power cuts in Sichuan was extended to the 25th, which affected the production activities of local cemented carbide enterprises, resulting in a further slowdown in the sales of raw tungsten powder and tungsten carbide. Although product prices were passively increased due to costs, the actual market supply and demand are still to be repaired.

Macroscopically, (1) overseas inflationary pressures are significant. In July, the CPI index of 19 countries in the euro zone rose by 8.9% year-on-year, the highest level since the official launch of the euro in 1999. In July, retail sales in the United States increased zero month-on-month, mainly due to falling oil prices and car sales. (2) The contradiction between power supply and demand under domestic high temperature weather is prominent. The China Electricity Council pointed out that the high temperature continued across the country, the daily consumption of power plants continued to run at a high level, and the domestic power generation and daily coal consumption hit the highest level for the same period for two consecutive years.

Prices of tungsten products on August 24, 2022

Picture of tungsten powder 

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