Tungsten Market Sees Price Consolidation

Analysis of latest tungsten market in China from Chinatungsten Online: “Confidence is worth more than gold” is applicable to the tungsten market, particularly when there is no hedging in the market. In the long-term, supply and demand determine tungsten price, confidence in the short-term. When tungsten price rises, market confidence will grow, which boosts price at high speed. On the contrary, prices will decline when customers are depressed.

After experiencing hot market in the off seasons, domestic tungsten market is getting colder in the golden September. Terminal enterprises commonly resist higher price of raw materials and replenishment needs in the downstream weaken. Under the background of weak demand, mainstream tungsten products price is bearing pressure with weak adjustment.

In the tungsten concentrate market, environmental protection inspection affecting production in mines has not an in-depth change. International Tungsten Industry Association (ITIA) will hold a meeting in Moscow on Saturday, which many bring good news for the industry. Some insiders think tungsten price may rise after the National Day, thus raw material enterprises are reluctant to sell.

Downstream smelting enterprises produce products according to market needs, mostly inquiry at lower price in the APT market. Less trading volume in the market, coupled with no guidance from large enterprises, manufacturers lower their quotation.APT market quoted price US$ 305 per mtu.

Terminal tungsten powder enterprises’ tolerance for rising raw materials price is limited and downstream enterprises reduce their replenishment requirements, thus powder enterprises become more cautious on receiving orders. High-quality tungsten powder price hovers around US$ 42 per tonne.

Comprehensive analysis: Callback in tungsten price is a normal phenomenon, whether large enterprises more bearish on the market, or terminal enterprises wait and see for a while, its impact for demand and supply will be limited in the short term. The supply in the market is limited, terminal and export markets are recovering, so the most important thing the market need to do is to regain confidence. We expect that falling tendency will slow down and the market is expected to move in a healthy direction.

Price of tungsten products on Sep. 20, 2017

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