Less Trading Volume in China Tungsten Market

Analysis of latest China tungsten market from Chinatungsten Online: Bearish sentiment is rife in the tungsten market following low long-term negotiated price released by large enterprises this week. Trading volume in the spot market is gloomy and the major problem for market is when the price will stop declining. 

Tungsten price has dropped by more than 15 per cent since September, weakening market confidence. It is difficult to conduct an orderly procurement when the market remains uncertain.

Tungsten market start to show signs of stabilization, but big tungsten companies still carry out relatively orthodox price, suppressing transaction price. Although tungsten price has been risen by more than 50 percent and the whole industry chain also got good recovery, some companies are hard to resupply raw materials, even cause losses.

Most of miners are waiting for a rising market boosted by favorable policy and strong demand in the afternoon market, so their shipments in this week will reduce. Buyers are still trying to force raw materials price down, unwilling to purchase. Differences in mentality between buyers and sellers cause low market turnover, continuing to press raw materials price. Quotation for 65% wolframite concentrate has fallen back to US$ 17,054 per tonne.

Raw materials price slightly declines, downstream enterprises demand a lower price, and APT manufacturers bearish on the later market. Deadlocked market, over the past month, continually affects the operating rate of enterprises, coupled with shortage funds and limited resupply of downstream purchasers, APT market is quite with less trading volume. Quotation for APY hovers around US$ 294 per mtu.  

Downstream hard alloy enterprises’ mentality value for tungsten powder is US$ 39 per kilogram, which is disaffected with manufacturer. The current quotation for tungsten powder is US$ 42 per kilogram. As the supply and demand is in a stalemate, tungsten powder enterprises maintain stability, waiting for new guidance.

Comprehensive analysis: The resource attribute of tungsten determines pricing rules. Large-scale companies monopolize a large amount of raw materials and processing resources, so their attitudes are very important to the market. Market weakness will continue to maintain, demand is expected to improve, but weak confidence greatly affects price stability. We suggest tungsten enterprises participate the market cautiously.

Price of tungsten products on Sep. 28, 2017

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