Increased Raw Material Cost, Positive Tungsten Market

Tungsten industry maintained a relatively optimistic attitude yesterday in China. The supply and demand are still at a stalemate.

While the raw materials cost pushing up prices of tungsten products, market participants are more cautious about the risk of cost upside down.

The tungsten concentrate market sustains steady growth. The new round of price has refreshed the highest record in two years. There are 65% tungsten concentrates’ prices are about RMB 86,000-88,000/ton in market. Constantly oppressed by high cost, miners maintain positive attitude towards price of tungsten ore. Though downstream smelters are inconsistent with high cost, the raw material prices still have the rising space in the increasingly serious situation of environmental supervision.

APT quotations in market are comparatively confused. Under encouragement of guiding price offered by large tungsten enterprises, some manufacturers actively increase the price, and current APT price reached RMB 134,000-138,000/ton. Still, there are some traders question the situation and choose to wait-and-see.

The powder market slowly keeps up. The cost of raw materials leads powder enterprises to adjust the quotation. But mainly due to scarce new orders in downstream market, the operation is still cautious. Currently, the market price is about RMB 205-208/kg.

Recently, when deploying the job in the second half of this year, the Ministry of Environmental Protection indicates that they will carry out the fourth batch of the central environmental protection supervisor soon. So, tight supply in tungsten market will not change in the short term, and if the demand has no obvious change, the market is expected to sustain steady growth.

Prices of tungsten products on Jul. 27, 2017

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