Consolidation in China Tungsten Prices Amid Weak Month-End Sentiment

Analysis of latest tungsten market from Chinatungsten Online

China tungsten prices are consolidating, with a slightly weak sentiment at month-end primarily due to the need for corporate fund adjustments and profit-taking for cash realization. 

Despite the complex international geopolitical situation leading to increased risk aversion and the appreciation of strategic resources' value, along with the impact of inflation and loose monetary measures on price levels and consumption recovery, the majority of industry insiders remain optimistic about the future, limiting the downward adjustment space for tungsten product prices.

The price of 65% black tungsten concentrate is hovering around $22,142.9/ton, with the supply chain remaining relatively tight due to environmental inspections, declining ore grades, and the reluctance of merchants to sell, limiting the adjustment space for profit concessions, leading to cautious and stagnant trading conditions.

Ammonium paratungstate (APT) prices are hovering around $371.3/mtu, with a continued tug-of-war between high costs and weak demand. Traders maintain a wait-and-see attitude, while factories are cautious about accepting orders, resulting in low operating rates.

Tungsten powder prices are stabilizing around $48,571.4/ton, with tungsten carbide powder holding at around $47,571.4/ton. Mixed sentiments of speculation and profit-taking prevail in the market, leading to relatively chaotic quoting. Alloy and downstream companies show limited enthusiasm for purchasing, opting for on-demand observation in trading.

The price of 70% ferro tungsten is hovering around $32,857.1/ton, with the market in a phase of oscillation in response to tungsten raw material prices. Overall trading activity remains subdued, with a dominant cautious sentiment.

The scrap tungsten market continues its trend of weak stability, with low initiative in backend acquisitions and divergent sentiments among traders in offering prices, indicating a sensitivity to various news factors and overall inadequate liquidity.

In terms of news, on May 27th, the third round of the second batch of central ecological and environmental protection inspections released a series of typical cases, focusing on environmental infrastructure deficiencies in seven provinces and cities in the Yangtze River Basin (Shanghai, Zhejiang, Jiangxi, Hubei, Hunan, Chongqing, Yunnan), resulting in phenomena such as direct discharge of sewage and black and odorous water bodies. Among them, all 11 prefecture-level cities in Jiangxi Province (Nanchang, Jiujiang, Yichun, Ganzhou, Yingtan, Shangrao, Ji'an, Xinyu, Fuzhou, Jingdezhen, Pingxiang) were named in the report.

Chinatungsten Online believes that although the official report mainly addresses issues such as rainwater and sewage diversion discharge, it is evident that Jiangxi, Hunan, and other areas have numerous environmental problems. They may face stricter management in the future, indicating that environmental protection measures in major tungsten-producing areas such as Ganzhou will become more stringent.

Prices of tungsten products on May 30, 2024

Picture of ferro tungsten 

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