China’s APT Price Is Weak Despite High Pressure from Overseas Markets

Details: Category: Tungsten's News; Published on Thursday, 27 October 2022 18:15

Analysis of latest tungsten market from Chinatungsten Online

The tungsten powder and ammonium paratungstate (APT) prices are unchanged from the previous trading day due to low trading activity in the market. The weakness in the demand side is forcing raw material manufacturers to reduce their offers.

In terms of supply, there are currently many destocking operations for intermediate smelting products and alloy ends. However, after the important meeting, the operating rate of mining enterprises and smelters has gradually recovered, and the market resource supply is facing further risks of pressure.

In terms of demand, the import and export data of China's tungsten products in September fell significantly year-on-year. Up to now, the consumption signal of alloy and its back-end is still unclear, and the market demand continues to be bearish.

In terms of cost, low-carbon and environmental protection requirements are superimposed at present. Due to high inflation and the greater risk of overseas winter power supply, the market cost pressure remains high.

In terms of capital, external uncertainties such as the epidemic and geopolitical conflicts, combined with overseas tightening currency expectations and the recent extreme depreciation of the RMB exchange rate, market risk appetite is low, and capital performance is tight.

In terms of news, the energy crisis continued to drag on the European economy. S&P data showed that the initial value of the euro zone composite PMI in October was 47.1, the lowest since March 2021. Among them, the initial value of the manufacturing PMI fell to 46.6 from 48.4 in September, lower than the expected 47.9 and a 29-month low; the initial value of the service PMI recorded 48.2, the lowest since March 2021.

Prices of tungsten products on October 27, 2022

China tungsten price photo