Stability in China Tungsten Prices Amidst Market Uncertainty

Details: Category: Tungsten's News; Published on Tuesday, 28 May 2024 18:28

Analysis of latest tungsten market from Chinatungsten Online

China tungsten prices remained stable in the week ended on Friday, May 24, 2024 as they temporarily paused after reaching historic highs.

The increase in market sensitivity and uncertainty reduced market participation and liquidity in the supply chain. Discussions among industry players regarding the future direction of tungsten product prices intensified, but trading activity outside of essential needs remained subdued, creating an overall atmosphere of cautious observation.

The price of 65% black tungsten concentrate is reported to be around $22,428.6/ton, with tight market supply. This is partly due to the impact of environmental inspections on major domestic mines and smelting product supply areas, and partly due to traders still intending to push prices higher within their financial limits, exercising control over the outflow of resources.

Ammonium paratungstate (APT) prices are reported to be around $376.1/mtu. Short-term challenges for smelting companies include raw material costs and environmental pressures on their operational strategies and financial strength. In the long term, smelters are trying to find a new profit balance point in this round of raw material price hikes. Market resource supply remains relatively tight, with overall factory operating loads decreasing and cautious acceptance of orders and offers.

Tungsten powder is priced at around $49.6/kg, and tungsten carbide powder is priced at around $48.6/kg. Industry players have a bullish long-term view on tungsten raw material prices based on considerations such as the steady recovery of the domestic economy, continuous repair of manufacturing industry demand, increasing geopolitical tensions, scarcity of strategic resources, and the enhancement of financial and hedging attributes. In the short term, increased volatility in the global economy, weak supply and demand fundamentals in the market, and delayed response of downstream terminals to raw material market conditions lead to differing views among powder traders. Some continue to hold high prices with minor fluctuations, while others exercise caution and maintain a sideways trend in product pricing amid profit-taking.

Prices of tungsten products on May 27, 2024

China tungsten price image