China’s Xianglu Tungsten Raised its Long-term Contract Prices for Late August

Analysis of latest tungsten market from Chinatungsten Online

China tungsten price kept stable on the whole in the week ended on Friday, August 26, 2022 because of continued low demand from downstream industries against high temperature and off season.  

The downstream feedback on the rising prices of the raw material side was not positive, and the recent high temperature power cuts in Sichuan and other places have restrained the upstream and downstream business activities of the industrial chain. The raw material side maintained a market-oriented mentality based on cost support, but the intention of profitable shipments was gradually increasing. In addition, the operating rate of factories in the high temperature and low seasons was reduced, which affected the overall consumption momentum. At the end of the month, the market trend of tungsten products slowed down, and the trading on the market remained cautious.

China’s Xianglu Tungsten released its long-term contract prices for the second half of August: 55% black tungsten concentrate price was $17,846.2/ton, an increase of $307.7/ton; 55% scheelite concentrate price was $17,692.3/ton, an increase of $307.7/ton; ammonium paratungstate (APT) price was $308.6/mtu, an increase of $3.5/mtu compared with the first half of August. 

On the macro level, (1) the Central Meteorological Observatory pointed out that the high temperature in the Sichuan Basin has been lifted since the 29th, and since the 31st, the high temperature in most of the south has subsided. With the gradual recovery of power consumption for industrial production and the arrival of the traditional peak season cycle, the consumption of tungsten market is expected to recover. (2) S&P global data shows that the initial value of the euro composite PMI fell to 49.2 in August from 49.9 in July; the initial value of the service PMI was 50.2, the previous value was 51.2, lower than the expected 50.5; the initial value of the manufacturing PMI was 49.7, the lowest level since June 2020; the previous value of 49.8, higher than the expected 49.0. Overseas energy shortages and inflationary pressures are still severe, affecting the release of manufacturing consumption.

Prices of tungsten products on August 29, 2022

Picture of tungsten acid 

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