Market Dynamics: Tungsten Prices Consolidate Amid Fluctuating Forces

Analysis of latest tungsten market from Chinatungsten Online

Tungsten Prices Range-bound, Market Players Engage in Intense Bargaining

Tungsten prices have been consolidating, intensifying the market's fluctuations, with tight supply leading to higher prices while demand remains limited. Amidst the uncertain external environment, all parties are cautiously observing and strategizing.

The Three Driving Forces of Increased Demand for Tungsten Products!

The real estate market policies are being rolled out one after another. Just as the previous wave has yet to settle, a new wave of policies has been implemented. The new real estate policies introduced on May 17th, 2024, are likely to mark the lowest point for China's real estate market. Starting from May 18th, the interest rates for housing loans from housing provident funds for over five years will be 2.85%, and for the second loan, they will be 2.775% and 3.325% respectively. At the same time, the minimum down payment for first-time homebuyers is set at 15%, and for second homes, it is only 25%. This significantly reduces the cost and financial pressure on residents, allowing them to leverage their purchases by 4-6 times. This not only lowers the threshold for home purchases but also reduces holding costs. In summary, the new policy can be described as: historically low down payment + lowest interest rates = lowest home purchase cost + lowest home purchase threshold! 

Therefore, we believe that under an unprecedented loose monetary policy, combined with policies such as shantytown renovation, government purchase of existing housing stock, and state-owned enterprises participating in the rental market, there will be significant changes in China's real estate sector. After the clearance of existing stocks, a new generation of high-quality housing, various types of low-density large flat units, forest homes, and suburban villas will emerge. Chinatungsten Online believes that the real estate industry has a long chain, which will drive the development of the entire real estate upstream and downstream industry chain, including building materials, furniture, and home appliances, and play a role in stimulating economic development. Among them, metals such as copper, aluminum, and steel will be widely used in this wave of new housing construction. Therefore, (1) new homes and (2) new energy, (3) artificial intelligence computing power will become the three driving forces for the increased demand for tungsten products. Moreover, these new demands will also impose higher requirements on the quality of tungsten products, thereby becoming a new driving force for improving the quality and efficiency of China's tungsten products, continuously upgrading them.

The Assassination of the Iranian President May Lead to Irrational Fluctuations in the Metal Market

On May 7th, Saudi Crown Prince Mohammed bin Salman was assassinated, but he survived the attempt. On May 16th, Slovak Prime Minister Fico was assassinated after attending a government meeting and is in critical condition. Prior to this, Serbian President Vučić had received death threats several times, and Turkish President Erdoğan and Belarusian President Lukashenko had also survived assassination attempts. The day before yesterday, on May 19th, a U.S.-made helicopter carrying Iranian President Rouhani and Foreign Minister Abdolrahim Gholi Sadeghi crashed, resulting in their deaths... All of these incidents indicate that we cannot assume that the continuous rise in prices of non-ferrous metals such as copper and aluminum will have a certain and stable market performance in the future. Any change could trigger a new round of market fluctuations, and it seems quite reasonable that the London copper price, widely predicted in the West, could rise to $12,000 per ton within the next 12 months, and even more than two to three years later, the price could increase by more than two-thirds to reach $15,000 per metric ton. Similarly, tungsten products, which are affected by the same factors, are highly likely to climb upward along the same path! If there is a sudden regional tension, its impact should not be underestimated! Therefore, Chinatungsten Online believes that special attention needs to be paid to the irrational.

Prices of tungsten products on May 22, 2024

China tungsten price image

Picture of gold plated tungsten wire 

gold plated tungsten wire image

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