China's Tungsten Market Exhibited an Upward Trend in August 2024

Details: Category: Tungsten's News; Published on Monday, 02 September 2024 17:15

Analysis of latest tungsten market from Chinatungsten Online

In August 2024, China's tungsten market exhibited an overall upward trend, marked by ongoing supply-demand tensions and limited spot trading volumes. Over the month, tungsten ore prices increased by 6.82%, although they remain 10.19% below the historic peak observed in May.

Supply Side: The tungsten market is experiencing a notable shortage of resources, which is driving price increases. This supply tightness is mainly due to the mismatch between concentrate supply and smelting capacity demand. Contributing factors include declining ore grades, stricter environmental regulations, frequent extreme weather events, and the potential for tighter controls on strategic resource exports in the future. As a result, suppliers are increasingly reluctant to sell, which is further supporting firm market conditions.

Demand Side: The overall support from demand remains relatively weak, limiting trading volumes and constraining upward price movements. This is largely due to the impact of complex and volatile geopolitical and economic environments on consumer confidence. Additionally, the hard alloy industry continues to face severe competition with homogenized products and price pressures, leading to a lack of proactive purchasing by buyers. Consequently, high-price transactions in the market have been hindered.

Market Outlook: Considering both market fundamentals and macroeconomic factors, industry participants believe there is a strong likelihood of a long-term upward trend in tungsten prices, although the short term may see continued cautious behavior from participants as they await clearer market signals and changes in the macro environment. The traditional peak season in September ("Golden September") may bring some increase in trading volume, but the sustainability and extent of high-price transactions remain to be seen.

Prices of tungsten products on September 2, 2024

China tungsten price image