Shanghai Nonferrous Metals News
Xianglu Tungsten expects a net profit loss of RMB 10~20 mln attributable to shareholders of the listed company in H1 2023, reversing the company’s profitable trend in H1 2022. The loss can be attributed to increased prices for tungsten concentrates and APT which have been led by declining concentrates production, in combination with a slowing global economy, shrinking downstream demand, fierce price competition, and stagnating prices for downstream products. Together, these factors have resulted in a contraction of the company’s profit margins, driving down profitability.
Mainstream wolframite concentrates (55% WO3) prices were being quoted at RMB 117,000/t on Tuesday, up by RMB 500/t from Monday. Stagnating downstream demand is unlikely to shore prices of tungsten products further, but strong concentrate prices will keep prices from a sharp fall, hence SMM analysts project prices of tungsten products to remain stable at the current level.