Tungsten Market in China Remains Strong

Tungsten market in China continues to remain firm this week. At the beginning of this week, long-term price of large tungsten enterprises surge and market confidence returns, thus supporting tungsten goods quotation. 

Demand factor is reconsidered later that week. Under the ton of supply shortage, markets are still optimistic about the market and price rises slightly lowered.

The supply of tungsten concentrate is tight in the market, just as before. The drafting of environmental protection tax and the coming of heating season show that China is boosting efforts to implement the national environmental policy. The fourth batch of the Central Environmental Protection Inspectorate is underway. Given the above factors, the operating rate of tungsten mines is difficult to recover.

ammonium paratungstate picture

In addition, the price of wolframite concentrate this week has reached RMB 100,000 /ton. It still has a large gap to make the profit of whole industry despite the ease of part of miners’ pressure of cost overhang. So most of miners are willing to join together to remain the current pricing.

APT and powder market, followed by rising prices of raw materials. The APT manufacturer’s mentality is positive, boosted by the adjustment in long-term price of large tungsten enterprises in the latter half of the month. With the support of high cost, APT price is gradually closed to RMB 160,000 /ton. Powder and alloy enterprises are not willing to bear the cost of oppression despite limited new orders. The trading atmosphere in APT market is cautious and the price is edging higher.

On the whole, most market participants are optimistic about the potential of industry demand. We expect that tungsten prices will continue to rise, and seek for a new round of long-term orders.

Price of tungsten products on Aug. 25, 2017

China tungsten market picture

 

 

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