Ferrotungsten market keeps silent
2005-07-19 09:34:19 【Print】
BEIJING (Asian Metal) 19 Jul 05 – Since the price of ferrotungsten dropped down to below USD33/kg weeks ago, the market has been quiet, as few few deals are reported. Consequently many ferrotungsten smelters halted production one by one.
“We haven’t gotten any inquire for a while. It might be the slow summer and high prices that make those buyers show no interest,” an official from a major ferrotungsten smelter in China told Asian Metal. "We can not accept a price lower than USD30/kg. The reason is too simple: our cost is close the figure."
With thousands of tons of production capacity for ferrotungsten, the smelter halted production last month.
According to the source, it could accept prices over USD30/kg in order to close out its 120t stocks, however, it feels difficult even to get some inquire from foreign market.
As for the date of recovery, the source said that it depends on the market conditions. “I hope the market could turn around in August.”
A Shanxi-based trader confirmed the quiet market. "We only get quotations from domestic market, but no inquiry from foreign buyers,” said the trader. However, the trader believes USD26-27/kg would be more workable if there is any deal concluded.
Commenting on the news that Jiangxi Rare Metals Rare Earth and Tungsten Corporation (JXTC) quotes a price of around USD34/kg for ferrotungsten, the trader said that, “A price over USD30/kg is just impossible for the current spot market."
By the moment, all four Chinese major ferrotungsten smelters JXTC, Jilin W & Mo, Emei Ferroalloy and Hengdong Tungsten, are in stoppage.
