Tungsten Price Rises Slightly, Heavy Wait-and-see Atmosphere in Market

Analysis of latest tungsten market in China from Chinatungsten Online: This week, domestic tungsten market stabilizes after in line for some weak consolidation. As the supply remains tight, traders’ profit delivery not only weakens strong market, but also releases some high price risks.

 In the short term, in circumstances where no obvious increase in buyers’ inventory and purchasers’ demand, tungsten price will maintain volatile and businesses will be more cautious in their operations.

For tungsten concentrate, the gap between total price level and reasonable price widens, with room to rise. From January to August, cumulative average price stands at US$ 12,574 per tonne, up 19.81 per cent year on year. But compared with US$ 21,054 per tonne, a record high in 2011, it falls by 40.28 per cent. In the second half of 2017, demand picks up and raw materials’ supply remains tight. Tungsten concentrate price broke through US$ 13,953 per tonne in July, August reached US$ 15,504 per tonne and September hit record high US$ 18,605 per tonne, according to the article released by China Tungsten Industry Association yesterday.

The current transaction in the market is not active, but tungsten price shows signs of a rise. In spot market, APT transaction slightly picks up this week, from the lowest point US$ 301 per mtu to US$ 308 per mtu yesterday. We expect the current quotation will stand between US$ 308 per mtu and US$ 312 per mtu. Some smelters raise their quotation to US$ 315 per mtu, but without the transaction at present.

Inquiries in the tungsten powder market increases. But considerable purchase orders are not available despite raw materials price declines. Most powder enterprises’ quotation maintains above US$ 43.41 per kilogram expect for individual small- and medium-sized powder enterprises. Orders in the tungsten powder market are expected to improve with the stabilization of price.

Comprehensive analysis: Tungsten price in this week is basically stable, but wait-and-see mood affects the transaction process. Actual actions from large tungsten enterprises are the focus of the market. Tungsten price stands at a delicate point that may rise or decline. From the point of view of supply and demand, it is more likely that tungsten price rises to a reasonable level, but large enterprises may go against market.

Price of tungsten products on Sep. 14, 2017

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