China Tungsten Price Kept Firm Due to the Increase of Long-term Contract Prices

Analysis of latest tungsten market from Chinatungsten Online

The whole China tungsten price kept firm in the week began on Monday June 5, 2023 with the impact of the increased long-term contract prices from listed tungsten companies, which prompted manufacturer’s offers at the same time. 

However, due to the fact that the consumption of downstream terminal tungsten products has not yet rebounded significantly, combined with the impact of the recent complex and tight export environment, the overall demand side of the tungsten market is still under pressure, which inhibits spot trading and negotiations, and tungsten prices also are stable. 

In the tungsten concentrate market, merchants are not willing to cut their profits, and the external offer is stalemate at around $18,769.2/ton. Most market participants hold a tight view on the supply side mainly due to environmental protection and safety requirements, lower resource grades, and traders’ reluctance to sell at low prices. But at the same time, businesses have insufficient confidence in the demand side, and the recent rise has been weak.

In the APT market, the upstream and downstream of the industrial chain continue to be in a stalemate, and the intermediate smelters carefully avoid the risk of price inversion. The export offers mainly hover around $316.4/mtu with long-term deals concluded mostly. 

In the tungsten powder market, the recent growth of manufacturing data has been sluggish, which has led to weakening consumer confidence in downstream terminals, and the cemented carbide market is under pressure. However, under the influence of the deadlocked situation between the cost side and the demand side, the tungsten powder market may not change sharply for the time being. The recent market price will stabilize at about $42.5/kg with heavy wait-and-see atmosphere in the market. 

On the macro level, the latest economic outlook report of the OECD pointed out that the global economy has begun to improve, but the recovery is weak, and the Ukraine crisis and global inflation are key risks; it is predicted that the global economic growth rate will slow down from 3.3% in 2022 to 2023 2.7%, rising to 2.9% in 2024.

Prices of tungsten products on June 12, 2023

Picture of tungsten acid 

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