China Tungsten Price Continues Its Weakness in Late September Due to Demand Contraction

Analysis of latest tungsten market from Chinatungsten Online

At the beginning of the week, China tungsten price continues its weakness due to limited support from domestic infrastructure and other consumptions as well as the contraction of international demand. 

The pace of the overall investment inside and outside the tungsten industry has slowed down. Participants are not optimistic about the demand in the fourth quarter, plus with the production capacity of tungsten raw materials and cemented carbide products has accelerated to expand over the past two years, market supply and demand pressure is significant. It is expected that enterprises will mainly reduce inventory and adjust product structure.

However, the cost side of the market is also facing challenges under the pressure of global supply chain disruption. With the addition of environmental protection and safety upgrades of mines during the National Day and the 20th National Congress of the Communist Party of China, the release of production capacity will be reduced. It is expected that the tungsten market has relatively limited room for weak adjustment, and the overall transaction negotiation is deadlocked. In addition, recent moderate to severe droughts, or even extreme droughts, in Fujian, Jiangxi, Hunan and other places have also disrupted the output and circulation of raw material resources to a certain extent.

The US-based Responsible Minerals Initiative RMI has suspended its audit of conflict minerals (3TG, gold, tantalum, tungsten, tin) in Russia, although the conflict between Russia and Ukraine, or the conflict between Russia and Europe and the United States, has caused some European consumer markets to turn to China, due to the limited external supply of Russian ferrotungsten, it is expected to have a limited impact on the current supply and demand layout of the ferrotungsten market. However, the global economic pressure caused by the geopolitical conflict is feeding back to the real economy such as the industrial manufacturing industry, and the consumption of the tungsten market is facing the pressure of shrinking volume.

Prices of tungsten products on Sep. 27, 2022

Picture of tungsten needle 

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