Analysis of latest Chinese tungsten market from Chinatungsten Online: Tungsten price still remains weak adjustment as there have no favorable news in the market. Supply and demand is in a stalemate, trading volumes become thin, buyers and sellers are caught in heavy wait-and-see atmosphere. Negative and positives factors intertwine in the market.
Firstly, downstream enterprises show less willingness to accept high raw material price, thus under the heavy wait-and-see atmosphere, market participants have strong desire to lower price.
Secondly, less trading volumes in the market makes enterprises difficult to return funds, and then reduce purchasing expenses.
Thirdly, downstream buyers inquiry at low price, sellers are reluctant to sell and some retails reduce profits to close a deal, which weaken firm raw materials price.
Fourth, the new guidance price from large enterprises also crimps market confidence.
Finally, with the update and development of recycling technology and the increasing supply of tungsten from Russia, Vietnam and other countries, the demand for domestic ore will be gradually weakened by substitutes.
Firstly, in recent years, the price of tungsten products has been in a downward trend, manufacturers have reduced their production, so the current market remains low raw material stocks.
Secondly, the operating rate in mines is reduced with the implement of environmental protection inspection, destocking and deleverage, and enterprises’ costs for environmental protection and control are increased, so raw materials enterprises hope to rise price.
Thirdly, the 19th National Congress will enhance environmental protection efforts, which may intensity tight supply in the market.
Fourth, the substantial growth in the export shows that international market has great demand for Chinese tungsten products.
Finally, the global economy is recovering at a low speed, economy in major tungsten products consuming countries is fine, which will have a great impact on global tungsten market.
Taken together, the deadlock in tungsten market is hard to break in the short term. But in the long term, tungsten products price will be in an upward trend, with limited callback.