Long-term Negotiated Price Declined, Pressuring Tungsten Market

Analysis of latest tungsten market in China from Chinatungsten Online: It is reported that the long-term negotiated price offered by large-scale tungsten enterprise in Fujian on Monday declined by US$ 8.76 per tonne to US$ 294 per tonne, compared with last week. 

Affected by the decline, quotation for domestic mainstream tungsten products declined. Wolframite concentrate quoted at US$ 17,519-17,829 per tonne, the average price fell US$ 310 per tonne; scheelite concentrate stood at US$ 17,209-17,519 per tonne, down US$ 310 per tonne; APT offered US$ 297-301 per mtu, the average price fell US$ 10.5 per mtu. Tungsten powder products price was unchanged.

Buyers and sellers in the tungsten market refuse to budge: weak demand presses upstream enterprises and sellers who have good expectation for environmental protection policy are reluctant to sell at low price. Businesses turn negative on the market.

Tungsten concentrate market: Low-cost inventories have been reduced since September, coupled with pollution abatement and restricting production in winter, market participants regain confidence and sellers reduce shipments at low price. Tungsten concentrate market stabilizes at present. 

APT market: Quotation in the APT market is in chaos. Some manufacturers with good market prospects keep firm quotation while others reduce profits to promote deals due to weak demand. Quotation for APT stands at US$ 306 per mtu, waiting for the guidance from large tungsten enterprises.

Tungsten powder market: Customers become more cautious on purchases, and downstream enterprises are under pressure on selling, which further weaken mentality of businessmen. Some enterprises even stopping quotation. High-grade tungsten powder price is around US$ 42 per tonne.

Comprehensive analysis: Large enterprises’ attitude has greater impact on the market when the market is caught in wait-and-see atmosphere as expected. Spot goods are increasing after the decline of tungsten price. Stocks of tungsten concentrate and APT also decline. For tungsten price, it has little room to decline as the purchases in the market recover. Tungsten price in China is expected to remain weak in the short term. Demand and supply is till the main factor affecting tungsten price, so enterprises need to make long-term plans.

Price of tungsten products on Sep. 19, 2017

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