China Tungsten Price Remained Firm with the Increase in Long-term Contract Prices

Analysis of latest tungsten market from Chinatungsten Online

At the beginning of the week, China tungsten prices remained firm, as the announcement of a new round of long-term contract prices from large tungsten enterprises once again boosted market sentiment. 

Over the weekend, some profit-taking outflows caused a divergence in the market. Overall, due to the tight supply situation and expectations of demand growth, holders are not willing to offer significant concessions, while buyers are cautiously entering the market based on immediate needs. Currently, market participation is low, spot trading is sluggish, and a cautious wait-and-see atmosphere prevails.

On the macroeconomic front, international capital inflows into the New York futures market have led to significant shorting of copper futures, prompting the Shanghai Futures Exchange and the London Metal Exchange to follow suit, setting new historical highs. As of last Friday's close, COMEX copper rose by 9.2% for the week, with a year-to-date increase of 30.4%; LME copper rose by 7.3% for the week, with a year-to-date increase of 24.8%; and Shanghai copper broke through the historical record of 84,000 yuan/ton, rising by 4.5% for the week, with a year-to-date increase of 22.2%.

According to Chinatungsten Online, the recent rapid rise in metal prices such as copper, gold, and silver is due to the volatility in the futures market, but the underlying reason lies in the rapid development of emerging industries such as new energy and AI, which drive the demand for electricity, promote the construction of infrastructure such as power grids, and drive the growth of metal consumption and future demand expectations.

Against this backdrop, the demand for tungsten alloys, a key material used in metal processing and shaping in manufacturing industries, is expected to increase significantly, which is one of the intrinsic logics behind the substantial rise in tungsten product prices in this round. Therefore, although there may be some short-term corrections in tungsten raw material prices due to profit-taking and market panic, the downside is expected to be limited.

The 2024 China Tungsten Resource Strategy Seminar is approaching, bringing together major domestic tungsten mining enterprises, tungsten smelting enterprises, and tungsten trading enterprises. According to the registration situation, several leading companies and key leaders in the tungsten industry will attend the conference. It is believed that the conference will involve lively discussions, gather consensus, and have a significant impact on the future trends and development of the industry!

Prices of tungsten products on May 21, 2024

Picture of tungsten granule 

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