Reasons for the Robust Trend in the Tungsten Market in the Year of 2024

Analysis of latest tungsten market from Chinatungsten Online

Based on Chinatungsten Online's nearly 30 years of immersion in the tungsten market, at the beginning of the year, we predicted that tungsten product prices in the first quarter of 2024 would show a slight upward trend, with APT prices expected to range between $298.6/mtu to $305.1/mtu. 

The full-year average price increase for tungsten series products in 2024 is expected to reference M2 increments and will not be less than 10%. As of now, we can see that the tungsten market is moving upward as we anticipated.

Based on current market quotations, the prices of 65% black tungsten concentrate have risen by 5.69% since the beginning of the year, 65% white tungsten concentrate prices have risen by 6.61%, ammonium paratungstate (APT) prices have risen by 6.04%, tungsten powder prices have risen by 5.86%, tungsten carbide powder prices have risen by 6.34%, and 70% tungsten iron prices have risen by 7.39%.

From the beginning of 2024 until now, the average price of 65% black tungsten concentrate is $17,857.1/ton, up 4.08% from the average price in 2023; the average price of 65% white tungsten concentrate is $17,671.4/ton, up 4.74% from 2023; the average price of ammonium paratungstate (APT) is $298.1/mtu, up 2.78% from 2023; the average price of tungsten powder is $39.6/kg, up 1.78% from 2023; the average price of tungsten carbide powder is $39.0/kg, up 1.72% from 2023; and the average price of ferro tungsten is $25,842.9/ton, up 3.19% from 2023.

According to Chinatungsten Online, some industry insiders expect tungsten prices to reach $21,428.6/ton. While we do not dispute this viewpoint, it is important to note that caution is warranted in chasing high prices. Periodic adjustments, with ups and downs, are more in line with market rules, as consumers require a certain level of acceptance. Furthermore, based on the current market fundamentals, supply and cost factors, along with the macroeconomic environment, play a dominant role, while the favorable conditions on the demand side need further improvement.

The robust trend in the tungsten market this week can be attributed to two main factors. On the one hand, environmental regulations, total production control, and the reduction in ore grade have led to expectations of tight tungsten ore supply. The resolute sentiment of holders has intensified the short-term tight situation in the market, with the robust market trend at the ore end transmitting to the smelting market and alloy end, and then feeding back to the raw material end. On the other hand, the inflation effect transmitted from the overall rise in commodities such as precious metals and non-ferrous metals to the tungsten market. Despite the WTO's forecast that geopolitical tensions and policy uncertainties will be the biggest risks to global trade recovery, for critical strategic resources like tungsten, the recent increase in safe-haven sentiment has continuously pushed up resource prices, temporarily weakening the impact of the unstable demand-side recovery.

In summary, we believe that it will be difficult for tungsten ore prices to exceed $21,428.6/ton in the short term, but the future looks promising.

Prices of tungsten products on April 15, 2024

Picture of tungsten probe needles 

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