Chinese tungsten association referring to customs’ data analysis, in May the export volumes of tungsten products are 2,767.55 tons, making an increase of 47.61% year on year and growth of 2.46%, of which the exports volumes of intermediate tungsten products (the original quota of tungsten products) are 2,226.50 tons, increasing 70.59% year on year and rising 2.46%. From January to May, cumulative exports volumes of tungsten products are 11,596.58 tons, making an increase of 44.20% year on year. Comparing to January to April, they have risen by more than 1.03% points. The export volumes of intermediate tungsten products (the original quota of tungsten products) are 8,900.34 tons, making an increase of 62.44% from a year earlier and growth of more than 2.55 percentage points comparing with that in January to April. As shown in figure 1.

 

From the point of export price, we can see that yellow tungsten oxide monthly average price in May, on year-on-year basis, rose 8.05% and increased 0.73% month-over-month. Monthly average price of blue tungsten oxide grew by 8.52% on year-on-year basis, and increased 3.08% month-over-month. Monthly average price of APT rose 7.80%, year-on-year increased 2.42%. Tungsten carbide monthly average price increased 6.69% year-on-year and rose 1.28% month-over-month. Mixture monthly average price rose 9.47%, while made a monthly decline of 18.12%. From January to May, the average price of yellow tungsten oxide rose by 14.41%.The blue tungsten oxide price rose by 15.36%. The average price of APT rose 9.75%, tungsten price rose 8.81%, and the average price rose by 7.35% mixture. The growth represents the return of the market after a long period of recession, as well as the results of two years’ effect in reducing stock and the improved contradiction between supply and demand.

 

Looking from the domestic market, overall the prices of raw materials such as tungsten ore concentrate and APT remain stable except appearing a small adjustment in June. In June average price of tungsten concentrate is RMB 81,600/ton, rising 6.02% while falling 2.26% month-over-month. In second quarter the tungsten concentrate average price is RMB 81,700/ton, rising 13.62% and increasing 11.40% month-on-month. In the first half of this year, the tungsten concentrate average price is RMB 77,500/ton, and increased 14.39% on a year-over-year basis. APT average price is RMB 125,200/ton in June, rising by 3.81% year-on-year while felling 1.25% month-over-month, In the second quarter, APT average price is RMB 125,000/ton, increasing 10.14% year-on-year and 10.44% month-on-month. During the first half of this year, APT average price is RMB 119,100/ton, rising 12.66% year-on-year. In the first half of this year, the price of tungsten concentrate runs within the range of RMB 70，000/ton to RMB 85，000/ton, and its highest uplift is 21.43%. APT price runs within the range of RMB108,000 ~ 129,000/ton, and the highest uplift is 19.44%. The movements of Tungsten concentrates monthly average price are shown in figure 3.

Looking from the international market, in June the European APT average price (LMB quotation, similarly hereinafter) is $220.90/ton (RMB 134,900/ton), rising 0.64% year-on-year and 1.10% month-on-month. In the second quarter the European APT average price is $217.09/ton, increasing 4.30% year-on-year and 7.04% month-on-month. During the first half of this year, the average price is $209.95/ton, increasing 10.46% year-on-year.

 

The tungsten market prices have been increasing steadily since this year. It reached a peak in May, going through the tungsten concentrate market resistant line of RMB 80,000/ton. APT price goes beyond RMB125,000/ton, and faced a small back in June. But due to the narrowed amplitude of fluctuation, the bottom price is increasing step by step.

 

Chinese national economy in May maintained its overall stable developing trend, making a steady development. The growth of the supply and demand is steady. As the employment situation continues to get improved, the consumer-prices is gently rising, the enterprises’ efficiency continues to improve and the economic structure constantly get optimized, the coordination and stability of economic development have been enhanced. In June, Chinese Manufacturing Purchasing Managers Index (PMI) was 51.7%, rising by 0.5% points compared to the previous month, and it was the eleventh consecutive month that exceeds more than 50%. The pace of the manufacturing sector’s expansion has accelerated. As the industrial economy picks up, especially the recovery of the manufacturing sector is accelerating, large infrastructure projects, as well as the recovery of mining, oil and gas exploration, will drive the growth of tungsten demand.

 

Under the influence of safety and environmental protection measures, the decreasing tungsten resources quality, increased auxiliary material prices and so on, the cost increased. Still, the stable yields of Tungsten concentrate production and the tightening supply pattern have not changed. At present, the market prices are under control, and overall they are returning to rational situation.

 

It is expected that export quantity of tungsten products, in June, will still be a substantial increase, comparing to the July influenced by European summer recess, the growth of export quantity of tungsten products will fall, the export market prices will continue to keep smooth running situation.

 

The export of tungsten products in June is expected to continue to grow substantially. In July under the influence of European summer break, the growth of tungsten products’ export volumes will decline, and the market prices will continue to maintain the steady running posture.