Chinese tungsten market in chaos
2005-07-07 16:59:50 【Print】
BEIJING (Asian Metal) 7 Jul 05 - As the tungsten prices keep dropping down in past weeks, the market is now sliding into chaos. Most people are watching the market and they dare not to run a risk for worrying possible abrupt price turn back after the historical high. Meanwhile, some participants who hold stocks have already begun to close out, with prices for tungsten conc quoted in a wide range from RMB80,000/t to RMB100,000/t.
"As we learn, the current prices stand at over RMB100,000/t and we believe the prices will keep into following weeks," said a tungsten smelter in South China, “But no buyer would like to place orders now and we have to only produce for long-term contracts, which decide our output." With a production capacity of 15tpm, the smelter’s current monthly output is 10t.
In view of the unclear market trend, the smelter halted production for other tungsten products, like tungsten powder, weeks ago. "No buyers, and we still have stock on hand."
Meanwhile, another tungsten smelter reported to Asian Metal that he heard that in somewhere tungsten conc is sold at the price around RMB95, 000/t, which seems to make him a little surprised.
“ Now in China tungsten market is in chaos and nobody knows what will happen tomorrow. European and American buyers prefer buying raw materials from Russia, where lower prices are quoted. For Chinese, it is very difficult to conclude contracts with Europeans,” he added.
However, the smelter is carrying out some orders for American buyers now. "Half a month ago, Americans bought a bit more than 10t tungsten oxide and the same volume of tungsten powder from us. Frankly speaking, few and small buyers are better than no buyer. Many smelters now can’t find a buyer,” said the source. Some smelters can’t insist on high prices as before, but have to sell stock in order to survive after the crazy season.
Another smelter reported even lower prices for tungsten conc to Asian Metal. "Now in provinces like Hunan and Jiangxi, the prices of tungsten conc are only around RMB80, 000/t or even lower, " said an official from the smelter, adding that they have no other choice, but halt production.
The smelter only produces 2-3tpm tungsten conc these two months. Referring to APT, the source quotes RMB 170, 000-175,000/t, which is also a prevailing level in the two provinces, the source claimed.
Commenting the views held by insiders that the price of APT would drop to USD200/mtu in next weeks, the official said that "No buyers, no actual prices. Everything depends on buyers.”
However, another company speculated that USD240/mtu might be the lowest in the near future.
