China Tungsten Market in May Continued the Upward Momentum from April 2024

Analysis of latest tungsten market from Chinatungsten Online

In May 2024, the overall trend of the China tungsten market continued the upward momentum from April. 

The price of tungsten concentrate reached a historic new record of $22,428.6/ton, with a month-on-month increase of about 15% and a year-on-year increase of over 25%. At the end of the month, prices of tungsten products experienced a slight correction, entering a consolidation phase after digesting some concerns about high prices.

According to a survey by Chinatungsten Online, industry insiders generally believe that the price correction at the end of May is a reasonable cyclical adjustment, meeting the need for some enterprises and traders to withdraw funds. Market panic is relatively low, profit-taking selling is relatively restrained, smelters and alloy manufacturers are cautiously adjusting supply and demand distribution to avoid the risk of overhang. Tungsten raw material suppliers have basically reached a consensus that tungsten product prices will not return to previous low levels. This is partly due to the increasing strategic and financial attributes of tungsten as a key mineral under the backdrop of international geopolitical tensions. Additionally, the demand for energy conservation and carbon reduction, as well as the profit requirements of smelters under long-term overhang pressure, will continue to drive supply constraints and structural optimization in the tungsten smelting sector. Furthermore, persistently high price levels in major economies internationally will disturb the domestic economic situation and related currency measures, thereby impacting enterprise operating costs and ultimately reflecting in tungsten product prices.

It is worth noting that China tungsten Online particularly emphasizes that all parties should closely monitor the significant impacts of unforeseeable geopolitical events and risks on tungsten product market prices and the positive and negative aspects for related enterprises.

On May 30th, the Ministry of Commerce, the General Administration of Customs, and the Equipment Development Department of the Central Military Commission jointly issued a notice regarding the implementation of export controls on relevant items. This includes equipment and software/technology related to the manufacture of aerospace structural components and engine parts, gas turbine engine/turbomachinery manufacturing equipment and software/technology, aerospace surface window-related equipment and software/technology, and ultra-high molecular weight polyethylene fiber-related items. Although tungsten is not directly mentioned, the production process of these equipment is closely related to industrial teeth and key material tungsten.

Prices of tungsten products on June 3, 2024

China tungsten powder price image

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