Tungsten Price Rising Sharply in China

Domestic tungsten goods prices rose sharply yesterday, tungsten raw materials supply shortage continues to mobilize business prices, but the terminal market does not buy it, tungsten market transactions actually sluggish, carbide industry profits suffered the most squeeze.

This year, high-intensity environmental policy has been forcing many mining enterprises and tungsten ore supply to stop production. Tungsten raw material suppliers are holding their goods so the downstream purchase is much more difficult. Thus tungsten industry chain as a whole shrouded in the supply side continued to shrink. At present, 65% black tungsten concentrate market price has been 112,000 yuan / ton, compared to the price 74000 / ton in beginning of this year it has increased over 50%.

In addition, volume and price of the export data is also hot for tungsten. According to customs data, from January to July this year, China's total exports of tungsten is 17486.25 tons, which increased 45.63%. At the same time, as per information of London  "Metal Herald" on Aug 18th, European APT price is $ 256 / ton which rose 36.89% this year. 

Export data shows international demand has recovered, while exacerbating tensions in the domestic tungsten supply. But under the influence of the off-season effect, the domestic demand has not yet significantly recovered, but also in the high cost of raw materials brought under the pressure, the downstream market inquiry intention weakened, the market transactions are still small. In this context, near the consumer terminal of the alloy companies can not follow up the raw material side of the soaring prices.