China’s Tungsten Powder Price Continues to Be Weak in the Second Half of October

Analysis of latest tungsten market from Chinatungsten Online

China’s ammonium paratungstate (APT) and tungsten powder prices continue to be weak when the whole market remains quiet in the second half of this month. 

In the tungsten concentrate market, the supply is tight for reasons 1) due to the slowdown in mining and metallurgical production during the 20th National Congress; 2) due to the relatively high operating costs of enterprises with the impact of environmental protection and inflationary pressures. Holders are cautious to stabilize the market and are reducing the sales of low-level resources. 

In the APT market, smelters generally take a wait-and-see attitude towards the market outlook. The macro-instability factors are constrained by the consumer market and the market demand prospects are not clear. Some traders consider profit-taking but downstream buyers still are not will to accept the price. The current market offers hover around $282.5/mtu. 

In the tungsten powder market, orders from the cemented carbide industry are limited, especially in the low-end field. The pressure of oversupply is obvious, plus with the unclear macro, the whole market trading activity is low.

In terms of macroeconomics, Fitch lowered its forecast for U.S. economic growth in the latest report. It is expected that the U.S. GDP growth rate will be lowered to 0.5% in 2023. At the same time, it believes that the U.S. economy will enter a mild recession in the second quarter of next year. The probability of a recession in the United States in the next 12 months is 100%; the "Wall Street Journal" survey believes that the probability of a recession in the United States in the next year is 63%.

Prices of tungsten products on October 21, 2022

Picture of tungsten ore 

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