The lowest price for APT at USD207/mtu -- JXTC

BEIJING (Asian Metal) 2005-08-23 Although APT price has decreased a lot in both China domestic market and international market, such as US and Europe, where the spot price for APT has already slid to below USD200/mtu, major Chinese tungsten smelters insists that the price is not so low in the market but still stands around USD210/mtu.

"We checked with China Chamber of Minmetals and Chemicals Import and Export, which is responsible for the approval of tungsten export contracts and found that the lowest contract price by the moment is USD207/mtu," a senior official from the largest tungsten smelter in China, Jiangxi Rare Metals and Rare Earth Tungsten Group (JXTC) told Asian Metal.

"The current export price is not what other media reports as lower than USD200/mtu to USD180/mtu or even USD170/mtu. It still stands over USD200/mtu, at least by this moment," said the source, "If to say a prevailing price or so-called workable one for both buyer and seller, I would say it is around USD210/mtu."

According to the source, to calculate the APT export price, one takes current RMB price (RMB126,000/t) minus export rebate (8%) and divided by RMB exchange (USD1=RMB8.10) is incorrect (The result is USD164/mtu).Asian Metal Copyright"The price increased a little later last week, from RMB73,000-75,000t to current RMB76,000-78,000t for tungsten conc and RMB125,000-127,000t to current over 130,000t for tungsten APT," said the source.Asian Metal Copyright The spot market price for APT has no any relation to the calculating method, but is fully based on the relationship of supply and demand.Asian Metal Copyright What's more, CTIA requires its around 45 members to sell or buy some quantity on this price level.Asian Metal Copyright

As China Tungsten Industry Association (CTIA) is holding a conference to make new price guidance for tungsten products, China domestic market price has firmed slightly later last week, the source claimed.

"The price increased a little later last week, from RMB73,000-75,000/t to current RMB76,000-78,000/t for tungsten conc and RMB125,000-127,000/t to current over 130,000/t for tungsten APT," said the source. Market participants expect the CTIA conference could bring some fresh wind to the sluggish market.Asian Metal CopyrightWith 6,000tpy APT production capacity, JXTC exported around 2,400t APT in the first seven months.Asian Metal Copyright

The source claimed that the three major Chinese ferrotungsten smelters would recover production one by one in this September. JXTC will restart in the first half of September, possibly in around 10th Sep.Asian Metal Copyright JXTC will restart in the first half of September, possibly in around 10th Sep.Asian Metal Copyright "The three majors' recovery shows the strong confidence for the future market," said the source.Asian Metal Copyright"We checked with China Chamber of Minmetals and Chemicals Import and Export, which is responsible for the approval of tungsten export contracts and found that the lowest contract price by the moment is USD207mtu," a senior official from the largest tungsten smelter in China, Jiangxi Rare Metals and Rare Earth Tungsten Group JXTC told Asian Metal.Asian Metal Copyright

With 6,000tpy APT production capacity, JXTC exported around 2,400t APT in the first seven months.

Commenting on the rumored greatly increased DLA sales plan for tungsten conc for next fiscal year and the restart of NATC's tungsten mine in Canada, the source said they are nothing to influence the market, if compared with around 80,000t total Chinese tungsten conc. output last year.Asian Metal Copyright"According to the source, to calculate the APT export price, one takes current RMB price RMB126,000t minus export rebate 8% and divided by RMB exchange USD1=RMB8.Asian Metal Copyright The market is still dominated by Chinese tungsten smelters.Asian Metal CopyrightHowever, Asian Metal was informed later Monday afternoon that CTIA had finally put the price guidance for tungsten conc in the following three months at RMB75,000t -- the current mainstream level as indicated by Asian Metal's assessment.Asian Metal Copyright

The source refused to give a prediction for the September market trend for tungsten, but said it is a top commercial secret.

However, Asian Metal was informed later Monday afternoon that CTIA had finally put the price guidance for tungsten conc in the following three months at RMB75,000/t -- the current mainstream level as indicated by Asian Metal's assessment. What's more, CTIA requires its around 45 members to sell or buy some quantity on this price level.