Market Stagnation and Uncertainty in China Tungsten Prices Amid Rising Demand Pressure and Global Geopolitical Tensions

Details: Category: Tungsten's News; Published on Wednesday, 04 December 2024 16:43

Analysis of latest tungsten market from Chinatungsten Online

China tungsten price is generally in a weak and stable deadlock stage, mainly due to increasing pressure on the demand side, which is exacerbating, and the recent rise in supply-side profit-taking,

affecting the confidence of traders. Additionally, the end-of-year stocking demand has not yet significantly picked up, and market sentiment is highly focused on negotiations. The pressure from price inversions in the middle links of the industrial chain is relatively heavy.

On Monday, the latest long-term contract prices from tungsten companies eased slightly, reflecting a weaker market sentiment.

In the tungsten concentrate market, the price of high-grade resources remains centered around $20,281.7/ton, with supply-side tightness persisting. Sellers' offers are still firm, but demand remains weak, leading to a slower pace of transactions and market conditions that are relatively stagnant in recent days.

In the APT market, manufacturers' prices have been under pressure and adjusted to around $335.8/mtu. The digestion of tungsten raw materials by downstream end-users is slow, and traders' wait-and-see attitude has intensified, keeping procurement cautious.

In the tungsten powder market, the positive impact from the upstream of the industry chain has slightly weakened, while persistent negative demand from downstream continues to disrupt the market. Market sentiment has cooled, with tungsten powder priced at $44.8/kg and tungsten carbide powder at $44.1/kg, with weak transaction volumes.

In the tungsten iron market, recent market battles have intensified, and the supply-side strength and weak demand logic in the industrial chain have not fundamentally changed. Market conditions are stuck in a stalemate, with the price of 70% tungsten iron consolidating around $30,281.7/ton.

In the scrap tungsten market, holders of material have increased their cashing-out intentions, while buyers' bargaining power has risen. The market remains stagnant, and confidence has weakened, with traders observing the native material market for direction.

On the macroeconomic front, on December 2, the U.S. announced new semiconductor export controls to China, involving semiconductor manufacturing equipment, storage chips, and other items, along with export restrictions on 136 Chinese entities. A spokesperson from China's Ministry of Commerce responded, stating that the U.S. says one thing but does another, constantly broadening the concept of national security and misusing export control measures to carry out unilateral bullying actions. China strongly opposes this. The semiconductor industry is highly globalized, and the U.S.'s misuse of control measures seriously obstructs normal trade between countries, severely damages market rules and international economic order, and threatens the stability of global supply chains and industrial chains. The global semiconductor industry, including U.S. companies, has been significantly affected. China will take necessary measures to resolutely safeguard its legitimate rights and interests.

Chinatungsten Online reminds that we should closely monitor the situation, as the new round of pressure from the Biden administration and potentially stricter and broader containment measures from a future Trump administration could lead to new and more stringent countermeasures in the management, regulation, tariffs, and tax rebates of key minerals and their products, such as tungsten, molybdenum, and rare earths. These countermeasures could be implemented rapidly and without warning, creating significant uncertainty and adverse factors for the industry, especially in terms of long-term import and export contracts, which will face multiple pressures and potential force majeure risks.

Prices of tungsten products on December 4, 2024

APT price image