Supply-Demand Imbalance Pressures Tungsten Market Amid Global Uncertainties

Analysis of latest tungsten market from Chinatungsten Online

China tungsten prices are showing an overall weak adjustment as the supply-demand imbalance persists. The market is caught in a tug-of-war between weak current conditions and stronger expectations. Recently, as sellers increase shipments to cash out, buyers have gained more bargaining power, placing downward pressure on market transactions.

The price of 65% black tungsten concentrate is quoted at $19,857.1/ton, with increased supply from miners and limited room for price concessions. Ammonium paratungstate (APT) prices have adjusted to $332.5/mtu, with limited spot market transactions, and ongoing sentiment battles within the industry chain. Tungsten powder prices are stable at around $44.3/kg, while tungsten carbide powder is at approximately $43.6/kg, with downstream buyers showing low initiative, keeping the market in a state of on-demand circulation. The price of 70% ferrotungsten has softened slightly to $30,000.0/ton, with cautious production and sales as participants monitor cost changes. Meanwhile, the scrap tungsten market is under pressure, with fundamentals weakening and increased liquidation activity.

On the supply side, tungsten concentrate resources remain tight, primarily due to declining ore grades and increased demand for raw materials driven by downstream capacity expansion. While intermediate smelting products and tungsten powder production capacities are relatively flexible, the difficulty in sourcing raw materials and pressure on demand have prevented factories from operating at full capacity, resulting in low overall production rates. The cemented carbide industry continues to face challenges with low-end homogenization competition and insufficient high-end added value. In general, recent profit-taking sales have impacted the overall supply-side support. However, expectations of tight tungsten raw material supply persist, especially given the anticipated control of strategic resources and advantageous minerals in the face of a complex international situation, which supports the outlook for a tight supply and firm prices in the future.

On the demand side, while there is optimism about the traditional peak demand season and the implementation of domestic consumption-boosting measures, the adverse effects of global geopolitical and financial economic shifts are increasing. Currently, the market lacks strong positive feedback on consumption, with participants showing limited enthusiasm for stockpiling, and transactions remain sluggish. Weak demand continues to suppress current trends in the tungsten market.

Prices of tungsten products on September 13, 2024

Picture of WL20 electrode

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