Unraveling the Surge: Factors Driving the Rapid Rise in Tungsten Prices

Analysis of latest tungsten market from Chinatungsten Online

As pointed out by Chintungsten Online upon returning from the long holiday of May Day, tungsten product prices have surged by 20% by the end of last week ended on Saturday, May 11, 2024. 

With tungsten prices rapidly rising at present and market price determinants becoming increasingly elusive, hidden currents are surging! In addition to conventional factors influencing prices and the pricing laws based on production costs and gross margins, there are more unconventional non-market factors, such as:

(1) The continuously soaring gold prices and the concurrently high US dollar index entangling with the RMB's unusually sharp appreciation of 1000 points during the holiday period;

(2) The rapid rise in prices of bulk commodities like copper and aluminum, along with exorbitant forward premiums predicted by institutions like Goldman Sachs;

(3) The unpredictability of the Russia-Ukraine conflict and Israel's explicit rejection of the US proposal for peace talks with Hamas;

(4) The seasonal forces of nature such as typhoons, heavy rains, mudslides, and other adverse weather conditions accompanying the arrival of summer, as well as the commencement of a new round of environmental and safety inspections that have already begun, bringing expectations of production stoppages and reductions for tungsten mines and smelters.

Prices of tungsten products on May 13, 2024

Picture of tungsten needles 

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