APT Hits the Largest Increasing

Tungsten market has experienced long term price volatility and in the July 28 it hits the largest one-day gain in the history. In the China mainstream region the smelting enterprises APT offer is asbout 110,000RMB/ton. Compared to yesterday offer, the price goes up ¥ 5,000 for each ton.

According to related news, the main reasons for APT prices increasing are short in supply. Due to tungsten market in the off-season, tungsten raw material price continues to decline, resulting in tungsten mine serious loss, so some mainstream mines are reluctance to sale. Besides, with trade finance flows into, the mines strengthen their decision of limiting production. The tungsten raw material suppliers also has high spirit on increasing price, so on this basis their raised tungsten raw material price, resulting in tight supply of raw materials. In the short term, tungsten concentrate prices rose to ¥ 10,000 for each mtu.

In the late July, the tungsten market continued to rise slightly. When the increase range is slowed, the Chinese State Council Environmental Protection Inspectorate stepped up inspection of the mine, where the first batch of inspection provinces includes Jiangxi. Jiangxi tungsten concentrate production accounting for 35% of country and APT accounting for 50%, affected by the environmental inspection, Jiangxi dozens of tungsten ore processing enterprises are discontinued, exacerbated tungsten raw materials market supply, so that APT and tungsten concentrate prices have risen sharply.

Faced with tungsten raw materials rising, the procurement market showed positive response to this situation. While it is difficult to accept smelting enterprises substantially price adjustment, but they basically agree with the current tight supply situation. Current market inquiry, APT is 110,000 RMB / ton. After SMM survey found, limited market spot basic at 110,000.00 RMB/ ton, but there is room for negotiation.

Integrated throughout the market situation, the tungsten raw material shorts in supply and manufacturers have high spirit on increasing price, so tungsten prices will continue to rise in the short term. Currently, tungsten concentrate price is more than 70,000 RMB /mtu and APT is about 110,000 RMB / ton.

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