The Tungsten Market in China Seems ‘Cool’ in the Middle of July 2023

Analysis of latest tungsten market from Chinatungsten Online

The tungsten market in China seems ‘cool’ compared with the scorching summer. On the supply side, miners are unwilling to sell at a lower price as the supply is relatively tight, and intermediate manufacturers want to avoid risks and reduce operating rates.

On the demand side, buyers receive goods cautiously, and are not active in trading; macro disturbances remain, domestic policy signals of steady growth are strengthened, external economic recession pressures and geopolitical risks are repeated, and the global trade environment has recently experienced "baked". 

In terms of news, according to data from the Bureau of Statistics, China's consumer price index (CPI) fell by 0.2% month-on-month in June, and turned flat from a rise of 0.2% in the previous month. The industrial producer price index (PPI) fell by 0.8% month-on-month, and the rate of decline narrowed by 0.1 percentage points from the previous month; it decreased by 5.4% year-on-year, and the rate of decline expanded by 0.8 percentage points from the previous month, which was the lowest value since January 2016. The data feeds back that the current economic endogenous driving force is not strong and demand is insufficient, while insufficient consumer confidence and expected deterioration are one of the important reasons. Based on the full-year economic targets, it is expected that policy drivers will increase in the second half of the year.

CITIC Securities believes that the current market is still in the triple valley of economy, policy and sentiment, and it is expected that the rapid slowdown of the economic recovery slope will improve in the third quarter. The policy will still focus on industry and risk prevention. The stage of rapid exchange rate depreciation is coming to an end. The state of the reduction game continues, and the theme of the industry still needs to wait.

Prices of tungsten products on July 12, 2023

Picture of tungsten alloy rods 

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