Tungsten market recovered fast in 2010 after a weak year of 2009. Chinese domestic tungsten concentrate price rose by more than 60% in the whole year and up by over 20% in November, pushing prices of all downstream products higher. In the second half of the year, China reduced the export quota for rare earth, drawing focus on the scarce strategic metals, such as rare earth, tungsten, antimony and others. Will tungsten market continue the upward trend in 2011?
Demand of tungsten products in both Chinese domestic and overseas market was strong in 2010 that many manufacturers needed to run with full production capacity to meet customers’ demand. Meanwhile, prices of raw materials skyrocketed, resulting in the manufacturers cautiously accepting orders. In 2011, most foreign consumers have built certain level of stocks, so demand may not be as much as that in the previous year. Will Chinese tungsten mines produce according to quotas? Can Chinese consumption give enough support to the price? Supply and demand are always the most important factors in free market.
Tungsten market in China corrected itself in the beginning of December 2010 for short time and started rising again in the beginning of 2011. Market participants are confident in future tungsten market. How to keep the upwards market trend after economic recovery? How can manufacturers help each other to develop?
The export quota in 2011 includes foreign invested company for the first time, and the quota volume in total is not changed much compared to the previous year, but for each products varies. Export duty in 2011 remains the same with potential reduction of export tax rebate and increasing of export duty. We need to analyze the Chinese government policy in this strategic metal and be prepared of any change.
Chinese productions of tungsten are still concentrated in upstream products. It will take long time to change the current distribution in tungsten market. Between profit and resources, parts and whole, central and local governments need to decide how to help high-tech contented, high value-added and highly competitive products and enterprises. The support from government is the strong backup of Chinese tungsten industry.
Senior officials from relevant national committees will be invited to clarify and detail macro-controlling policies and export strategies on the development of Chinese Tungsten industry.
Senior executives from well-known major market players in the tungsten industry from both China and the rest of the world will give their unique and insightful views on the development and outlook of tungsten market.
Professional editors from world-renowned media outfits, such as Xinhua Agency, Reuters, Interfax and Bloomberg will be invited to attend and report this summit.