El Niño May Hamper the Recovery of the Tungsten Industry

Analysis of latest tungsten market from Chinatungsten Online

The tungsten price in the Chinese market remains weak at the beginning of the week on low trading activity of both buyers and sellers as well as the poor external trading environment. 

At present, tungsten concentrate price hovers around $17,647.1/ton with low buying appetite of downstream; APT price stands at about $297.4/mtu and smelters are worried about the risk of price inversion; tungsten powder price is about $40.0/kg and the market is under pressure. 

According to data from the China Construction Machinery Industry Association, 15,766 excavators of various types were sold in June, a year-on-year decrease of 24.1%, of which domestic sales decreased by 44.7% and exports decreased by 0.68%. From January to June, a total of 108,818 excavators were sold, a year-on-year decrease of 24%; domestic sales decreased by 44%; exports increased by 11.2%.

Recently, compared with the financial environment that continues to fluctuate, people should directly experience and deeply feel the invasion of high temperature and heat waves. On July 11, it will officially kick off the prelude to the "dog days". It is reported that the highest temperature in Hunan, Jiangxi, Zhejiang, Fujian and other places can reach above 40°C. This kind of high temperature that even the wind is "hot" is not unrelated to El Niño. Last week, the World Meteorological Organization (WMO) announced the formation of El Niño conditions. It is predicted that the duration will last from the third quarter to the end of the year, and there is a high probability of record-setting extreme high temperatures in the next five years. 

According to Chinatungsten Online, the occurrence of the El Nino event may trigger more extreme weather events, the recent fluctuations in global agricultural product prices, the stability of the international financial market is expected to be disturbed to a certain extent, and the economic recovery pressure of the tungsten industry will also increase in the future.

Prices of tungsten products on July 11, 2023

Picture of tungsten acid 

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