Tungsten Market Shows Stability, Transaction in Stalemate

Analysis of latest tungsten market from Chinatungsten Online: At present, market participants in the tungsten market wait and see instead of taking actions. In September, used to be a peak season, shows instability, the willing of purchase declines in addition to raw materials. 

While the tungsten price still appears on a downward path, the slope is not as steep as many had feared. Some enterprises stop selling products at low price and a small number of them start to purchase and sell orderly.

The mainstream tungsten price has stabilized. Main smelters purchase ores at US$ 16,434 per tonne to US$ 17,054 per tonne. After the current round of price fluctuations, there are more than 8000 tonnes of tungsten concentrate flow into the processing factories in the main producing areas and distribution centers of Jiangxi and Hunan region. Negotiable inventories in the market decrease while liquid funds increase.

The price of APT is also showing signs of stabilization. The current mainstream APT trading price hovers around US$ 294 per mtu to US$ 298 per mtu. From the perspective of cost and raw material supply, it is not likely for smelters to sell products at low price. In addition, APT in stock in Jiangxi and other places becomes less.

Tungsten powder market appreciates a little breather after a long period of high pressure. In the earlier stage, tungsten powder price has been pulled up, pressuring the whole tungsten powder enterprises. With the price correction of raw materials, tungsten powder price starts to stabilize. Powder enterprises will make profits when tungsten carbide powder sells above US$ 41.86 per kilogram. Quotation for mainstream tungsten carbide stands at US$ 42.17 per kilogram to US$ 42.64per kilogram.

Comprehensive analysis: The market is still caught in the heavy wait-and-see atmosphere. Risks of replenishment are the point needed to be concerned, once the market shows signs of stabilization, trading funds and purchases are expected to enter into the market. From the point of view of large enterprises, tungsten price continuing to decline is what they want to see, as they account for a larger share of raw materials. Chinatungsten Online predicts that tungsten price will gradually stabilize and enterprises need to pay more attention on changes of the market.

Price of tungsten products on Sep. 25, 2017

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