Tungsten Market in China Is Stable with Good Momentum

Analysis of latest tungsten market in China from Chinatungsten Online: Tungsten price has risen more than a month. In the process of rising, market parties maintain different attitudes. 

For miners, they make great profits; for smelter and powder production enterprises, production and purchase are tough, but value added on the production inventory; for cemented carbide enterprises, they can only passively accept the hike in raw materials as tungsten goods price increases more slowly.

Tight supply of tungsten concentrate is the main factor to support August tungsten price’s surge, though the market sentiment also contributes to a certain extent. After rising by more than 40 per cent in tungsten concentrate, the market suspects that can tungsten price faces another turning point?

The market was still unquiet last week. On Friday, Tungsten Industry Summit Forum was held in Ganzhou. In the meeting, mainstream tungsten companies expressed their views based on different parties’ different appeals, and views on it diverge a lot. For rational side: the rise in tungsten is reasonable and needs rational treatment. For positive side, tungsten resources belong to strategic metals, so it is reasonable if tungsten concentrate price exceeds USD 22,939 per tonne. For negative side: it has certain risks behind the rally in tungsten price.

In the weekend, some tungsten products’ transaction prices continue to pick up. The volume of 60 percent wolframite concentrate from middle trade enterprises exceeded seventy tones, transaction price reached USD 28,235 per tonne, equating to USD 27,680 per tonne of APT, USD 42 per kilogram of tungsten carbide. 90 per cent wolframite concentrate reached USD 18,362 per tonne.

The guidance price quotation for September from Ganzhou Tungsten Industry Association and long-term price in the half the month coming from Zhangyuan Tungsten will come out these two days. The two authoritative prices are very important to the market. Given the rally in August, they will show large price increases.

Comprehensive analysis: Tight supply of tungsten concentrate is still difficult to solve despite the surge in its price. At present, market risks will not spread if there is not large amount of spot goods hitting the market. In earlier September, key turning point will appear, but has not apparent effects on the price. In the short term, tungsten price is expected to be stable with good momentum.

Price of tungsten products on Sep, 4, 2017

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