Tungsten Market Analysis: July 2024 Overview and Future Outlook

Analysis of latest tungsten market from Chinatungsten Online

In July 2024, the overall tungsten market in China is in a bottom-seeking phase, with the maximum decline in tungsten ore prices reaching 8.5% during the month. Since the downward cycle began at the end of May, the total decline has reached 17.2%. Weak market demand and panic selling by traders are the main negative factors.

However, as the profit margins for traders continue to shrink and factory inventories remain low, the intention to stabilize the market is gradually increasing, aiming to find a bottom before reaching the initial price levels of the rapid price increase seen in April. Additionally, extreme weather events such as high temperatures, heavy rain, and typhoons have been impacting the main production areas of tungsten products, influencing both the supply side and market sentiment, accelerating the appearance of a turning point. By the end of July, tungsten raw material prices have slightly rebounded, with an increase of about 6.5% for tungsten ore prices this year.

Looking ahead, the foundation for continued price increases of tungsten products has not yet been established, and the market's supply-demand relationship will remain in a state of negotiation. Industry participants believe that the consumption slump in August will continue to ferment, with overall market demand still showing signs of fatigue and insufficient positive drivers for price movements. Furthermore, under pressures from the global economy and geopolitical tensions, speculative demand and trading sentiment in the metals industry are being suppressed. However, on the supply side, there has been an increase in sellers holding back stock and buyers engaging in bottom-fishing and restocking operations, which is boosting market transaction activity. Expectations for a tighter overall supply of tungsten ore are prevalent, coupled with concerns about high costs in a complex economic environment, leading to an unchanged expectation for long-term oscillating upward trends in tungsten products.

Prices of tungsten products on August 1, 2024

Picture of cesium tungsten bronze

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