Shanghai Nonferrous Metals News
Recently, Qiu Wanyi, Secretary-General of the Ganzhou Tungsten Industry Association, said that the decline in tungsten prices can be attributed to the following three reasons:
- Lack of confidence in tungsten prices. Lack of confidence as a result of escalation of US-China trade conflicts. Additionally, the news that Fanya’s (Pan Asia) 30 kt APT stocks will return to the market shortly has also been weighing on prices. However, according to some market analysts, Fanya’s 30 kt APT stock is not a major concern, as it can be consumed by the market in no more than three months with prices stable within a reasonable range.
- Excessive tungsten capacity. At present, overall mining capacity and output of domestic tungsten mines is far greater than the 100 kt per annum national mining quotas stipulated by the government. Domestic tungsten concentrate prices are expected to rise to RMB 150,000/t if the national mining quota scheme is strictly implemented.
- Weak demand from downstream automobile and tool-making industries. Ove the past year or so, the demand for tungsten has been in decline due to the prevailing weak macro-economic sentiment.
Typically, August is a slack consumption season for the tungsten industry, seeing most smelters halt operations in response to hot summer temperatures. The domestic tungsten market is expected to remain stable, continuing July’s momentum, with tungsten concentrate prices sitting between RMB 70,000~72,000/t, APT prices at approximately RMB 110, 000/t and tungsten powder prices between RMB 175,000~182,000/t. Looking forward to September, with resuming demand in the European market, tungsten concentrate consumption is expected to increase gradually.