China Tungsten Prices Show Steady Upward Trend Amid Market Variability

Analysis of latest tungsten market from Chinatungsten Online

China tungsten prices generally exhibited a steady upward trend in the week ended on Friday, August 16, 2024, driven primarily by the reluctance of miners and APT (Ammonium Paratungstate) producers to sell at lower prices. 

However, the alloy sector’s enthusiasm for consuming tungsten powder remains under pressure, compounded by risks in the export environment. Divergent expectations between buyers and sellers have led to a situation where prices are increasing, but actual transactions remain unstable and inconsistent.

The price of 65% black tungsten concentrate adjusted upwards to around $19,428.6/ton, with long-term contract prices from tungsten enterprises providing solid support to the market. Sellers are showing a strong inclination to hold onto their inventory and explore higher prices. However, buyers remain hesitant, leading to sluggish transaction follow-through.

APT prices have followed the upward trend, quoted at around $326.1/tmu. Strong supply-side dynamics and rising costs have bolstered market confidence, though demand remains lukewarm, with cautious purchasing strategies limiting market activity.

Tungsten powder prices have edged up to around $43,285.7/ton, while tungsten carbide powder prices remain steady at approximately $42,571.4/ton. The strengthened cost base has shifted the bargaining power slightly in favor of sellers, although there has been no significant change in actual supply and demand, resulting in a stalemate in the spot market.

The price of 70% ferrotungsten remains stable at around $29,571.4/ton, with raw material cost support being a key factor in maintaining price stability. However, tepid consumption in the alloy sector has constrained the potential for price increases, with most traders adopting a wait-and-see approach.

The market for scrap tungsten has generally trended upwards this week, although there remains some price discrepancy in the quotes. The strong performance of primary tungsten materials has encouraged suppliers to hold firm on prices, but the alloy sector’s activity is still dampened by seasonal factors and a weak recovery environment. Market participants remain cautious, with no significant increase in transaction volumes observed.

On the macroeconomic front, according to data from the National Bureau of Statistics, in July, China’s industrial production above designated size increased by 5.1% year-on-year and by 0.35% month-on-month. The total retail sales of consumer goods reached 3.7757 trillion RMB, up by 2.7% year-on-year. The surveyed urban unemployment rate was 5.2%, up 0.2 percentage points month-on-month but down 0.1 percentage points year-on-year. From January to July, national fixed asset investment (excluding rural households) totaled 28.7611 trillion RMB, up by 3.6% year-on-year, with private fixed asset investment at 14.7139 trillion RMB, unchanged from the same period last year.

Prices of tungsten products on August 19, 2024

Picture of tungsten hexachloride

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