Tungsten Concentrate Tight Supply Continued

Tungsten prices in China market this week show a sharp increase. Up to now, compared with the data on Monday, 65% tungsten concentrate prices increase RMB 2,000/ton.

APT price increase RMB 7,000/ton, and high quality tungsten powder price increase RMB 3,000/ton.Near the end of this month, the majority of traders tend to catch up the price trend, deviating from consistent cautious operation.

The tight supply of tungsten concentrate is still a key influential factor. Although the demand in the off-season is flat, there is still a pre signed long-term order barely support. Because of the less production limited by environmental protection, high temperature and rainstorm, the supply continues to be tight. Meanwhile, giving that a thing is valued if it is rare, it is possible that miners under cost oppression combine to reduce production and increase price.

Customs data shows that China imported 136.61 tons of tungsten ores and tungsten concentrates in June 2017, reducing 42.569% compared with that in May. Under the background of low operating rate in China and low tungsten concentrate import data, raw material supply became much tighter, meaning the demand in afternoon market will be weak.

In the short term, the supply shows a little advance in the game between supply and demand. Currently, tungsten concentrate price gradually closes to RMB 9,000/ton. And APT market price has reached RMB 140,000/ton. If the market outlook still show flat demand, tungsten products prices are expected to maintain the growth trend.

Price of tungsten products on Jul. 28, 2017

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