Price Trend of Tungsten in July, 2016

According to the analysis of tungsten market these months, the price of tungsten is going up and down, and it is expected that the trend in July is also in low level.

The world economy is under a downturn circumstance, demand of tungsten is going through the same situation. This year, its price has hit the bottom line as tungsten concentrate to be 57,000RMB/TON. After several government’s stimulus activities, such as State Reserve Purchasing and Storage Tungsten Plan, Main Tungsten Companies’ Meetings, the price has been going up until end May. Even the third Meeting of China Tungsten Industry Association and main suppliers had also held a meeting in Jun, but there seems no increasing after this meeting. As the opposite side, the price is going down and down, and the trend will continue in July.



Actually, the price of 57,000RMB/TON for the tungsten concentrate has beyond the manufacturers’ cost, and that is why most of the manufacturers are only opening for a basic salary support and equipments operations, but do not eager to larger the production volume. Even at such opening status, the stock size is still in thousand tons. A Jiangxi Company shows its stock as 400tons concentrate. In order to keep the price level in 75,000RMB/TON, the eight Largest Tungsten Suppliers has limited its production volume, with a hope that the market will be brighter.

As consumption productions, in fact, tungsten has also got a seasonal time, which is July and August. Europe and America have been two large tungsten users, most of factories are tend to being vacation to escape from such hot whether and high temperature. As a result, the purchasing in these two months will be obviously decreasing.

Less purchasing, but larger stock, tungsten price is expected to stay in a low level. Conversely, when the price decreases to a bottom level, stays and go up rapidly as a trend. Tungsten is a mysterious but significant material. No matter the price is, its strategic position is never changed. Down trend of raw material will lead to a finished products price declining, including tungsten bar, tungsten electrode, ect. Therefore, the price of tungsten finished products in July is still not so positive.

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