Ferrotungsten market keeps firm -- Sources
2005-06-03 09:00:00 【Print】
BEIJING (Asian Metal) 3 Jun 05 - Although some market participants claimed that the market prices for ferrotungsten have softened some these days, as the original drive of the tungsten market, tungsten conc prices remain at around RMB130,000/t for three weeks and both sellers and buyers are carefully watching the market to avoid potential huge risks, others reported to Asian Metal that the ferrotungsten market does not hence turn back, but still stands firm in a range of USD35-38/kg.
"We really heard of some lower prices quoted by some small smelters, but they can not provide much materials. The mainstream prices still keep firm in a range of USD36-38/kg," an executive from a major ferrotungsten smelter in China told Asian Metal.
According to the source, the market fundamental does not change, westerns still keep nearly zero stock and the domestic tungsten conc prices are still unchanged, so there is no reason for ferrotungsten price to slide. In view of current tungsten conc price, the source thought USD35/kg should be a cost price for ferrotungsten.
The source predicted that the market will at least keep around the current level in the forthcoming weeks.
"If to mention any changes for ferrotungsten market, the price is rising," said a major Chinese trader, who regularly trades large quantity of ferrotungsten.
"We just sold a batch of the material at around USD37.5/kg and are now trying to further raise the price to USD38/kg," the trader said.
Although those small smelters are quoting lower prices, they have no cargo available and only those large smelters hold the materials, said the trader.
The trader speculated that the current stable market trend may keep for some weeks and the possibility for price decline is very small.
"There are all kinds of rumors over the market, but we have not felt the market softening," a major trader in Europe told Asian Metal. The trader believed that current European market prices should be around USD36-37/kg for ferrotungsten.
However, the trader would not like to purchase ferrotungsten directly from China, even at a price of lower than USD35/kg, but purchase some from European market if possible. "It is too risky. Even we buy some at a lower price level, but it takes four to five weeks to reach Europe, while anything can happen in so long time. The market is always changing," said the trader.
