China’s Tungsten Powder Price Has Risen by 5% since January 2023

Analysis of latest tungsten market from Chinatungsten Online

Chinese tungsten market is expected to continue to be strong in the short term as there are many positive news in the market. 

First, the negative impact of the epidemic eased. The market consumption and enterprise production and operation environment tended to be stable; second, the implementation of the domestic economic stabilization promotion fee policy was promoted, which drove the demand for downstream manufacturing industries to gradually pick up; third, the slowdown of overseas tightening policies and a slight drop in inflation eased the pressure on the financial and metal markets; fourth, a new round of institutions and large enterprises guided price increases to implement the market growth since the Spring Festival. Holders are still mainly interested in exploring higher prices, and downstream tungsten products are passively following the rise.

Chinatungsten Online reminds that the price increase of tungsten concentrate, ammonium paratungstate (APT) and tungsten powder by about 5% since the beginning of the year is not too much compared with the strategic metal tungsten. However, due to the fact that the current market demand momentum has not yet been fully released, in the hot atmosphere of "expected repair" in the market, industry players also need to carefully consider the possibility of a collection of negative factors.

The reasons are: first, the risk of periodic callbacks after the market has reached a high, and the recent phenomenon of partial profit-making shipments has increased buyers' fear of high price; second, "re-inflation" concerns affect the risk appetite of the consumer market, and overseas people are significantly pessimistic about the continued increase in inflation; third, the pace of recovery of the domestic real economy may be lower than expected due to macro uncertainties, and the risk of market supply and demand games still exists.

According to data from the China Federation of Logistics and Purchasing, the global manufacturing PMI in January 2023 was 49.2%, an increase of 0.6 percentage points from the previous month, ending the 7-month consecutive month-on-month decline, but still below 50%. Among them, 50.9% of the manufacturing industry in Africa, 50.5% in Asia, 49.1% in Europe, and 47.7% in the United States. It shows that the downward trend of the global economy has eased, but the impact of the epidemic, inflation, geopolitical conflicts and extreme weather events on the economy still exists.

Prices of tungsten products on February 10, 2023

Picture of tungsten trioxide 

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