Analysis of latest tungsten market in China from Chinatungsten Online: Domestic tungsten prices continue to reach stalemate when the weekend approaches. Tungsten ore supply is limited, suppliers maintain strong position and some scattered sources flow out of the market.
At the same time, buyers demand a lower price, enquiries in the floor trading market decline, transaction volume is poor. Operations should be further on wait and see.
Some large enterprises taking part in tungsten market this week do very little for negative market sentiment from the current situation. A listed Jiangxi tungsten enterprises placed more orders on APT. some central enterprises also purchase APT and tungsten concentrate at the same price as the market.
In China, most of tungsten resources are in major tungsten enterprises’ hands due to the special properties, and others are in the hands of private enterprises.
The transaction price in the trading market is the main factor to influence tungsten concentrate pricing, thus affecting other markets’ price. If enterprises who have large purchase volume, once they have powder to decide pricing, it will have a greater impact on the market in a critical timing.
Four major tungsten enterprises produce nearly 60,000 tonnes of tungsten concentrate, but have little effect on pricing. Several large tungsten enterprises having large purchase volume from trading market have a greater say in the pricing for the moment. We can reach a conclusion from the price correction that enterprises having large demand for tungsten concentrate and APT affect market pricing greatly.
On the whole, tungsten prices still have room to rise as mine supply is limited. But the soaring price of raw materials is unaccepted by downstream enterprises, tungsten market will be in a wait-and-see situation in the short term. Scientific development of tungsten industry is a step by step process, Chinatungsten Online suggests market participants to operate rationally, avoiding hype misleading and low-price
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