Rising Tungsten Prices

We have been watching tungsten prices rise, pull back and rise again.

We had assumed that the market was supported by China, the dominant tungsten producer and by a forecast pullback in production from CanTung the world’s larger tungsten mines.

But tungsten prices may also indicate a return of industrial confidence and economic growth within some key manufacturing economies.

Tungsten is principally used for bits for cutting tools which are mainly used in manufacturing and heavy industry.

Manufacturers need to supply machines with tungsten carbide cutting tools as a first step before ramping up industrial production ahead of new forecast demand.

In past cycles new Chinese demand has buried the market and forced prices lower but with the market seemingly in balance we assume that new industrial demand is lifting prices.

It is possible that the US DLA and other strategic stockpile agencies are also part of the demand equation with tungsten marked as a critical metal by the major superpowers.

There are a number of new tungsten producers listed in Canada, the UK and Australia which are worth looking at.  We would avoid Malaga as its Pasto Bueno tungsten mine is now on care and maintenance.

There are no Tungsten ETFs so there is no potential for ETF sales to distort the market.


Tungsten Carbide Manufacturer & Supplier: Chinatungsten Online - http://www.tungsten-carbide.com.cn
Tel.: 86 592 5129696; Fax: 86 592 5129797
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