China Tungsten Market Analysis in the First Half of 2023

Analysis of latest tungsten market from Chinatungsten Online

In the first half of 2023, China tungsten market generally fluctuated in a range because the macroeconomic environment was under pressure, and the fundamentals of supply and demand continued to be in a stalemate. 

As of June 30, the prices of tungsten primary products and intermediate products have slightly increased compared with the beginning of the year, but the overall market sentiment was low, and the market is facing cyclical downward pressure at the end of June.

On the supply side, in the first quarter, various holidays such as the Spring Festival, safety inspections during important national meetings, and environmental protection inspections in major production areas affected the start-up of mine production and the supply of resources. However, these factors are time-sensitive, and the relevant effects have gradually faded over time. In the second quarter, compared with the weak demand market, the actual resource status has limited positive effects on the market. However, the market sentiment continued to be tight on the supply side. Affected by miners' reluctance to sell and support the market, the cost support of the tungsten industry chain is strong. Intermediate smelters and traders carefully negotiated prices for shipments.

On the demand side, the export data of China's tungsten products from January to May was under pressure, reflecting the continuous downturn in the external demand market; the weak recovery of the domestic market economy, and the poor production and sales data of various industries such as steel and excavators showed that the domestic demand market was less prosperous than expected. The sluggish atmosphere at the cemented carbide end put pressure on the raw material market.

Overall, the tungsten market demand is expected to be under pressure, and the market driven by the supply side has limited sustainability. The stalemate in the tungsten market has become prominent recently, and transactions are generally negotiated on demand. Many areas of China are hit by high-temperature weather, which may intensify the contradiction between supply and demand in the market. It is expected that the price of tungsten will continue to fluctuate in the market outlook. We will wait and see the overall economic data and consumption growth in the second half of the year kinetic energy.

Prices of tungsten products on July 3, 2023

Picture of tungsten acid 

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