Continued Decline in China Tungsten Prices with Insufficient Positive Drivers

Analysis of latest tungsten market from Chinatungsten Online

The decline in China tungsten prices shows no sign of stopping, with recent news providing insufficient positive momentum.

 A new round of long-term contract quotes from tungsten enterprises has once again highlighted the pressure on market demand and the prevailing sluggish sentiment. Traders' confidence has been shaken, leading to lower transaction prices. The U.S. has initiated anti-dumping and countervailing duty investigations on Chinese tungsten bullets, signaling to tungsten companies the need for caution amid the complex and severe international situation. The strategic resource of tungsten faces numerous uncertain risks, compounded by the growing challenges and difficulties in the current domestic economic operation, such as extreme weather events and insufficient effective demand, which are dragging down overall economic growth.

U.S. Launches Anti-Dumping and Countervailing Duty Investigations on Chinese Tungsten Bullets

According to Trade Law Communication, on July 10, 2024, at the request of Tungsten Parts Wyoming, Inc., the U.S. Department of Commerce announced the initiation of anti-dumping and countervailing duty investigations on tungsten shot imported from China. The investigation will examine whether the alleged dumping and subsidization of these products have caused or threaten to cause material injury to the U.S. domestic industry, or significantly delay the establishment of the U.S. domestic industry. The products involved fall under the U.S. Customs code 8101.99.80. The U.S. International Trade Commission (ITC) will make a preliminary determination on the anti-dumping and countervailing duty injury by August 26, 2024.

Domestic Economic Recovery Still Requires Consolidation

According to preliminary calculations by the National Bureau of Statistics, the gross domestic product (GDP) for the first half of 2024 was 61.6836 trillion RMB, an increase of 5% year-on-year at constant prices. The GDP grew by 5.3% year-on-year in the first quarter and by 4.7% in the second quarter.

The "three driving forces" of consumption, investment, and net exports have shown steady progress. In the first half of the year, the total retail sales of consumer goods were 23.5969 trillion RMB, an increase of 3.7% year-on-year. Service retail sales increased by 7.5% year-on-year. National fixed asset investment (excluding rural households) was 24.5391 trillion RMB, an increase of 3.9%, excluding real estate development investment, an increase of 8.5%. The total import and export of goods was 21.1688 trillion RMB, an increase of 6.1%.

A spokesperson for the National Bureau of Statistics stated that in the first half of the year, China's economic operation was generally stable, and the transformation and upgrading progressed steadily. However, it is also necessary to recognize the complex and volatile external environment and the insufficient effective domestic demand. The foundation for the economic recovery still needs to be consolidated. In the next stage, efforts should be made to promote high-quality development, stimulate greater market vitality and endogenous power, consolidate and enhance the momentum of economic recovery, and promote sustainable and healthy economic development.

Prices of tungsten products on July 17, 2024

Picture of tungsten plates

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