China Tungsten Concentrate Market

China  tungsten concentrate prices move up gradually, but the downstream markets are unfavorable. According to the formula, the APT price = (tungsten concentrate price *1.45)+11,000. In early March, the wolframite 65% prices were at RMB118,000-120,000/t (USD217-221/mtu), and the APT prices should be at RMB182,000-185,000/t (USD336-341/mtu), but the prices were only at RMB179,000-181,000/t (USD330-334/mtu) in the spot market, and some offers were even lower.

Later, as  tungsten concentrate prices were pushed up  further, the APT prices were always at below the production cost. Although the APT prices moved up accordingly into April, the increasing speed was slow. This is one of the puzzlements of increasing tungsten concentrate prices.

With the increasing tungsten concentrate prices, the downstream tungsten powder and cemented carbide markets are unfavorable. As the tungsten concentrate and APT prices move up, the tungsten powder factories raise offers. But the demand from the downstream cemented carbide market remains soft, and the consumption is small. The trading is thin in the spot market. Moreover, under the current APT prices, the tungsten powder prices are lower than the production cost. The tungsten powder factories are running with difficulties.

Furthermore, most of the downstream factories hold some stocks, which could be consumed in around two months. Therefore, the customers are inactive in making deals. However, cemented carbide factories intend to maintain regular customers, so they have to hold offers stable even though the production cost moves up continuously with the increasing raw materials prices.

Now, some companies keep purchasing the materials in the spot market. The tungsten concentrate and APT prices show uptrend, and tungsten powder prices will follow up in the future. Moreover, if the tungsten prices remain at high level after several months, the downstream enterprises and overseas customers will accept the increasing offers. However, whether the market could move up further or not is unclear as it still depends on
the supply and demand in the spot market. 

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