Tungsten raw material market changes
After beginning to rebound from its high prices following a decline that started in end of May( 28th, May), the price of tungsten raw materials has risen by approximately 18- 20% over the course of just one week.
By reviewing relevant domestic and international reports, that report showed in March, tungsten prices hit the annual historical high (black tungsten concentrate exceeding 1 million yuan per standard ton), followed by a two-month deep correction.
At the end of May, it bottomed out and reversed, driven by both mine (reluctance to sell) and downstream inventory replenishment.
International APT prices are significantly inverted, that European APT prices range from 2,900 to 3,180 US dollars per ton-degree (equivalent to 1.74 to 1.91 million yuan per ton), which is nearly 1 million yuan per ton higher than domestic APT. Overseas procurement costs are much higher than domestic, leading to an increase in foreign trade export order inquiries.
Currently, the factors affecting the price are as follows , we would like to list for your refernece,
1. Short-term (1~2 weeks): Sellers are still reluctant to part with raw materials, and downstream demand has not yet completed its replenishment of inventory. Tungsten prices are expected to fluctuate with a bias towards strength, continuing to rise slightly. However, downstream buyers are cautious about high prices, leading to a situation where prices rise but trading volume contracts, narrowing the potential for a significant upward surge.
2. Medium-to-long term: With strict control over domestic mining quotas and increased reserves of critical minerals by Europe, the United States, and other regions, coupled with sustained growth in demand for tungsten wire in photovoltaics and tungsten targets in semiconductors, tungsten as a whole is likely to be prone to rising and difficult to fall, making it unlikely to return to the low prices seen in May.
3. For new orders of tungsten related products such as tungsten electrodes, tungsten wires etc, that will quote based on current spot prices to account for raw material price fluctuations. For existing orders, try to lock in raw materials in batches as much as possible.We suggest that commended to make judgments and decisions based on your actual market demand and sales performance.
