Limited Supply of Tungsten Concentrate

With the shortage of raw material supply, the divergence between tungsten mine and smelter has narrowed gradually. Market participants tend to insist on a conservative selling way, waiting for higher price.

Central environmental supervision leads to low production rates in major producing areas. The supply of tungsten ore sand in market is scarce, and the traders are very enthusiastic about supporting the market. Current 65% tungsten concentrate price is RMB 100,000/ton. In addition, supported by cost, some ore shipments would rather wait for the target profit point to come than sell goods. It is understood that, at present, tungsten concentrate inventory in Jiangxi has exceeded 10,000 tons, of which the cost is over RMB 100,000/ton.

scheelite image

APT quotation continues to growth as the cost increases. Most manufacturers believe that demand will increase after the off-season. There is still room for tungsten price to increase with the limited production and national storage.

In order to make up for the high cost pressures, smelting enterprises become more willing to take a conservative selling way and some businesses have suspended the offer. At present, the price of high quality tungsten powder is quoted at RMB 235/kg. Transactions in powder market are mainly completed by long-term customers.

Overall, the current tungsten price’s rally is a result of limited supply of raw materials which is seems too difficult to lose in the short term. Although there are obstacles for consumer side to follow, the relationship between supply and demand becomes better. Tungsten price is expected to remain high level.

Price of tungsten price on Aug. 24, 2017
prices of tungsten products image

 

 

WeChat