Construction Machinery Industry Acts as an Indicator for Tungsten Products Consumption

Analysis of latest tungsten market from Chinatungsten Online

China tungsten price continues to maintain stable, with a prevalent observation of sellers being cautious and adopting a wait-and-see approach. Industry players are currently focusing on the progress of downstream inventory replenishment before the Spring Festival. However, there is a limited increase in new order volumes at present.

The price of tungsten concentrates remains stagnant at around $17,571.4/ton, and the market reflects a clear mindset of strategic maneuvering. Suppliers maintain a resilient stance, while buyers show limited acceptance of high prices. Overall, market transactions and negotiations are proceeding cautiously.

Ammonium paratungstate (APT) prices are also stagnant at around $293.8/mtu. The scarcity of low-priced raw materials in the market makes downstream customers hesitant to make active purchases. The trading atmosphere continues to be marked by persistent disagreements between buyers and sellers.

Tungsten powder prices are holding steady at around $39.0/kg. Hard alloy enterprises remain cautious in their inventory stocking, and the overall flow of tungsten raw materials is slow. The recent market atmosphere is characterized by a significant wait-and-see sentiment, with trade focused on just-in-time needs.

On the macroeconomic front, uncertainties persist, with concerns about a global economic slowdown in 2024. Geopolitical tensions remain tense in certain regions, and the actual effectiveness of domestic demand stimulation measures is yet to be observed. There is limited updating of expected news before the Spring Festival.

According to data from the China Construction Machinery Industry Association, sales of various types of excavators in December 2023 totaled 16,698 units, a year-on-year decrease of 1.01%. Domestic sales reached 7,625 units, showing a year-on-year increase of 24%, while exports declined by 15.3% to 9,073 units. In 2023, a total of 195,018 excavators were sold, representing a 25.4% year-on-year decrease. Domestic sales amounted to 89,980 units, down 40.8% year-on-year, while exports totaled 105,038 units, down 4.04% year-on-year. As a key indicator for the construction machinery industry and a barometer for the economy, the latest excavator data reflects the consumption pressure on tungsten products in sectors such as infrastructure, real estate, and mineral extraction in 2023. However, the reversal of year-on-year growth data in December may indicate a recovery in tungsten product consumption in the construction machinery industry in 2024.

Prices of tungsten products on January 12, 2024

Picture of tungsten probe tips 

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