Tungsten Price Jumps up Fast in China

The latest analysis of tungsten market in China from ChinaTungsten Online: tight supply becomes the most factors in the price hike of tungsten concentrate, and the rally continues to drive tungsten price. 

Tungsten concentrate and APT have been seen more than 40 per cent growth in the new round of price increase from July, marking its biggest gain in a short period since 2013. 

Today, tungsten products prices continue to rise. Wolframite concentrate quotes RMB 113,000-115,000/ton, showing an average rise of RMB 3000/ton; scheelite concentrate quotes RMB 111,000-113,000/ton, showing an average rise of RMB 3000/ton. APT quotation is RMB 113,000-115,000/ton, up RMB 3000/ton and middle tungsten carbide quotation is RMB 265-270/ton, up RMB 7/kg. In the actual transaction, APT cash transaction price in a large smelter is RMB 176,000/ton, and the transaction price of 55 percent wolframite concentrate is RMB 115,000/ton.

Operating rate of tungsten mines hits a record low due to the environmental protection policy. Wolframite concentrate supply accounted around 50 percent of the whole market from some small and middle tungsten mine also is affected. The sharp increase in tungsten price, businessman’s strong rised mentality for tungsten concentrate, coupled with the coming of September, tungsten concentrate has price but not sales. 

APT transaction price rose to RMB 176,000/ton in the main smelters yesterday, some smelters’ price also rose to RMB 180,000/ton. The quotation is likely to close up RMB 180,000/ton, according to major smelters. Cost accounting for recent high-class tungsten concentrate has reached RMB 178,000/ton. Moreover, some smelters’ ‘bullish’ on APT also influences the progress of sales. 

The price of tungsten powder continues to rise following raw materials. Mainstream tungsten carbide quotes RMB 265-270/kg, and large powder enterprises concentrate in RMB 260-265/kg. Based on the raw material, RMB 175,000 of APT can be converted to RMB 267 of tungsten carbide, and RMB 178,000 of APT can be converted to RMB 271 of tungsten carbide. Considering controlling raw materials and maintaining customers, large powder enterprises lower their paces to rise price.

Comprehensive analysis: the growth in tungsten price is beyond market’s expectations. But it is normal for its leap-forward growth as the price hike is in accordance with the principles of ‘price is determined by the relative supply and demand’. Under the great pressure of environmental protection policy, tungsten concentrates production declines. This is the primary factor of the rising. From the current situation, the pace to recover the supply of tungsten concentrates would be lower. We forecast, with the coming of September, market demand will increase to drive tungsten price.

Price of tungsten products on Aug. 31, 2017

Picture of tungsten powder 

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