Dynamic Analysis of International Tungsten Market October 24, 2022

Recently, the annual meeting of the International Tungsten Association was held in Belgium. The participants reflected that the current consumer market continued to be sluggish, and the market purchase volume was unlikely to improve in the next month. Since the second half of the year, the export volume of China’s tungsten products has continued to shrink. Among them, the export volume of China’s tungsten products in September was 1,861 tons, down 27.25% from the previous month. Among them, the export of tungsten trioxide was 350 tons, down 29.87% month-on-month, and the export of blue tungsten oxide was 227 tons, down 57.9% month-on-month;
APT exported 86 tons, down 57.97% month-on-month; tungsten carbide exported 441 tons, down 2.94% month-on-month, indicating that international tungsten consumption is still shrinking.

More tungsten mines resume work

With the successful conclusion of the conference, the production of some tungsten mines has gradually returned to normal, which will increase the spot supply in the market. The mainstream price of 55-60% tungsten concentrate is $15,000/standard ton. Holders are cautious and have not taken the initiative to cut prices. APT companies have increased production reductions and delayed purchases. The overall market is in a stalemate.

APT’s weak consolidation and poor circulation

Due to the lack of improvement in downstream tungsten powder orders, the operating rate of enterprises is low, APT purchases mostly maintain long orders, and bulk purchases are suspended. At present, the focus of bargaining is $23,500 / ton, the actual transaction volume is small, and the sales pressure does not decrease.

Tungsten powder just needs to maintain the transaction

Affected by the backlog of cemented carbide finished product inventory and the prolonged capital return cycle, new orders for tungsten carbide are not good, and the bulk cargo transactions are mainly just needed, and the price is going down. The current transaction price of tungsten carbide is $35.5/kg, and the transaction price of tungsten powder At 35.28 /kg. Market sentiment was sluggish, and the proportion of production cuts increased.

Carbide consumption is under pressure

At present, the reference price of cobalt 10 bars is $49.0/kg, the reference price of cobalt 6 ball teeth is $43.0/kg, the reference price of conventional roller rings is 46.92/kg, and the reference price of top hammer is 55.13/kg, although the price drop is not large , but the new orders fell significantly, the superimposed payment was difficult to return, and the short-term volume and price continued to decline.

To sum up, the domestic and foreign tungsten markets continue to maintain a sluggish operation, the destocking cycle is prolonged, the operating rate of enterprises continues to decline, the oversupply situation is manifested, and the short-term adjustment situation is difficult to be optimistic.