Tungsten outlook 2017

       

Looking ahead to 2017, a price on the rise and increase in demand appears to be in the cards for the tungsten market, particularly in China. Chinatungsten Online preducts tungsten concentrate prices in China to sit between 75,000 and 80,000 yuan per ton in 2017–which is higher than the 2016 average.

That said, Almonty Industries (TSXV:AII) announced in November that it had entered into a number of one-year fixed prices for tungsten concentrate for $210 MTU, which are effective as of January 1, 2017.

Lewis Black, president and CEO of Almonty Industries appeared hopeful about the industry moving towards a fixed price. “We fully expect the rest of the industry to move to a negotiated fixed price contract environment due to the continued limited availability of tungsten concentrate in the spot market and the ongoing illiquidity of the current pricing mechanisms,” he said in the release.

While it seems as though a price recovery is in the works for the tungsten market, it may take some time to come into play. The intrinsic importance of tungsten to industrial applications will ensure that the sector recovers, however; it is a question of not if, but when. That said, investors will have to wait and see for themselves how the market unfolds in 2017.