China Tungsten Price Was Weak Due to the Lower-than-expected Demand

Details: Category: Tungsten's News; Published on Monday, 25 September 2023 18:28

Analysis of latest tungsten market from Chinatungsten Online

China tungsten price has generally shown a stable to slightly weaker trend in the week ended on Friday, September 22, 2023, primarily due to the lower-than-expected demand in the market, affecting the confidence of market participants and putting pressure on negotiations.

Currently, there are still differences in market participants' confidence in the future. Tungsten raw material suppliers are holding onto their stocks, downstream users are generally engaged in price negotiations based on their actual needs, and intermediate traders are cautious to avoid price inversion risks. With the upcoming double holiday season, it is expected that the tungsten market will continue to remain in a state of observation and standstill amid the supply-demand game.

The price of 65% black tungsten concentrates remains around $17,142.9/ton, with limited upward momentum. However, given the strong support from the cost side and the decline in resource grade, there is no basis for a significant decline in the short term, and the market is mainly in a period of consolidation.

APT (Ammonium Paratungstate) price is hovering around $290.6/mtu. The differentiated situation in the industrial chain upstream and downstream has affected the enthusiasm of traders' participation. Market trading and negotiations are in a state of standstill, with limited liquidity in the resources.

Tungsten powder price remains around $38.9/kg. There is insufficient follow-up from the consumption side of the market, and the purchasing orders from tungsten carbide companies are lower than expected, affecting the overall raw material market sentiment. The market's trading sentiment is slightly negative, and the market is weakly stable.

On the macroeconomic front, the latest economic outlook from the OECD (Organization for Economic Co-operation and Development) predicts that global GDP growth in 2023 will slow down to 3.0%, which is slightly higher than the 2.7% forecasted in June. Global economic growth in 2024 is expected to further slow to 2.7%, below the 2.9% forecasted in June.

Prices of tungsten products on September 25, 2023

China tungsten price image