The price of tungsten concentrate rises rapidly but the market remains dull. Downstream consumers refuse to accept the current price,the reason is that major buyers collect materials for pushing price higher.
A manufacturer in Jiangxi shared with Asian Metal that China Minmetals offers wolframite 65%min at RMB126,000/t(USD308/mtu) in spot market, and buy tungsten concentrate instead now. No others can accept the current price, and the mainstream price now in tungsten concentrate spot market is RMB120,000/t (USD294/mtu), increased by RMB1,000/t (USD2.4/mtu) on Monday.
“The terminal demand remains low, there are few purchasing activities in spot market of tungsten concentrate , ” a source said, adding that most consumers are not positive to future market, and are careful to reconstruct stock in advance.
They will keep watching under the sluggish economic situation,unless consumers see goingup trend in near term.The source trusts if the downstream does not support the tungsten concentrate spot market,limit room for the price to go up further.
A factory owner based in Hunan who is with producing volume of 300 tons began that they released 500 tons of wolframite 60%min at RMB125,000/t (USD306/mtu) to major buyer last Wednesday, and the payment will be settled after 2 months. The price in tungsten concentrate spot market is so high,so no consumers can accept, and ammounium paratungstate producers’ psychological price is around RMB120,000/t (USD294/mtu). “More and more mines will halt production in the coming 2 months,so the supply of tungsten concentrate will be tight.” the source said.
The source also estimates that the basic demand is very weak, so he is confident to the future market.