China’s Tungsten Powder Price Keeps Firm at the Beginning of February 2023

Analysis of latest tungsten market from Chinatungsten Online

China’s ammonium paratungstate (APT) and tungsten powder prices continue to keep firm at the beginning of February 2023. 

On the one hand, the cost of raw materials promotes the downstream cemented carbide to follow up, and reversely stimulates tungsten raw material products to go up; on the other hand, affected by the active atmosphere of the molybdenum market, the bullish sentiment in the tungsten market has become increasingly enthusiastic. 

Moreover, the expectation of asset appreciation denominated in RMB has further promoted the price of spot products in the industry and the stock market to jointly heat up.

Jinlu Cemented Carbide issued a product price adjustment notice on February 1. Due to the continuous rise in raw material prices. the production cost of the company has increased. In order to ensure the normal and continuous operation of the company, it plans to increase the price of cemented carbide products. The cemented carbide enterprise is jointly controlled by China's leading tungsten industry Xiamen Tungsten (70%) and Minmetals Nonferrous Metals (30%).

The release of the price adjustment letter may mean the beginning of a new round of price increases for cemented carbide companies. The industry generally believes that China's economic vitality and consumption are expected to be fully released in 2023. Under this background, the demand for tungsten products is expected to recover and grow steadily, which will drive up the price of tungsten products.

On February 1, Zhangyuan Tungsten Industry and Xianglu Tungsten Industry rose by the daily limit, Xiamen Tungsten Industry rose by 6%; China Tungsten High-tech rose by 5.12%. Chinatungsten Online believes that the reason why the stock prices of tungsten listed companies are soaring is that, on the one hand, it is affected by the continuous rise of the molybdenum market since the Spring Festival; on the other hand, it is due to the increase in resident deposits after the issuance of domestic currency, and the large-scale entry of foreign capital optimistic about RMB assets. While promoting spot consumption, a large part of funds are being sold, or about to flow to the stock market.

It is worth noting that the rapid rise in the short term is not conducive to the healthy and sustainable development of the industry. The operation of tungsten products companies will inevitably be affected by domestic and international financial and geopolitical situations, but we still need to pay attention to the impact on the price of tungsten products important factors such as supply, demand, and quality.

Prices of tungsten products on February 3, 2023

Picture of tungsten acid 

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