Tungsten Price Edged Lower on a Lack of Confidence

Analysis of latest tungsten market in China from Chinatungsten Online: Tungsten price slightly declined last week. With the rally in previous price, many buyers made certain profits in spot markets, thus more and more buyers sold their products at high price, suggesting a lack of conviction behind the gains. 

As the price was weak, purchasers lowered prices and buyers concluded deals at low price, pressuring tungsten market. It has a certain gap between the overall price level and reasonable price, tungsten concentrate still has room to rise, according to an article released by China Tungsten Association last Thursday. This article gives hope for the current unfavorable market.

Many miners are optimistic on the afternoon market and reluctant to sell as domestic tungsten production is hard to recover affected by environmental protection inspection. Traders sold products mainly from stocks with frequent low-price trading. But with the decline of stocks, quotation from manufacturers stabilized. 65% wolframite concentrate price fell to US 18604 per tonne last week.Trading in APT market was not active. Price fluctuations were affected by upstream raw materials price, ranging from US 307 per mtu to US 312 per mtu. Trading volume on APT spot market also fell, demand weakened and manufacturers were cautious on quotation. For customers, their enthusiasm for purchases was not high, which was difficult to drive APT price.

Tungsten powder manufacturers were passive. On the one hand, upstream tungsten raw materials price maintained high even environmental protection inspection causing price stocks, so manufacturers only can passively follow up purchasing. On the other hand, tungsten powder price increased following cost while downstream enterprises rejecting high-priced products are reluctant to purchase, which further suppressed powder price.

Tungsten concentrate market is under pressure, low-price trading reduces market confidence, views of price stability increase and good expectation for afternoon market boosts market sentiment. Low-price trading in APT market cannot not be ignored despite that enterprises hold the view of stability. The current tungsten market is in chaos amid buyers are reluctant to sell and low-price trading exists. The long-term price released by large enterprises this week may have guidance for the current trend.

Price of tungsten products on Sep. 18, 2017

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