APT producer refuses high tungsten conc price
2005-02-21 18:49:08 【Print】
Beijing (Asian Metal) 21-Feb-05 Market prices for tungsten keep surging, with higher ones quoted everyday. Only three working days passed, since the long Spring Festival holiday, the price of APT has jumped up from around rmb80000/t to current rmb84000-86000/t (Asian Metal's assessment for the market), while higher ones are over rmb90000/t, although few transactions are reported from the market. Meanwhile, the main engine for the price hike, tungsten conc prices are quoted by the market at a level as high as around rmb55000/t, about 13% up from rmb48000/t seen before the Spring Festival, although the current main stream contracted ones, if any, are assessed at around rmb52000-53000/t.
Seeing the rocketing market prices, however, many tungsten conc. consumers do not take an very positive attitude over the market as expected.
"If the price (tungsten conc. price) keeps rising or even stays at current level, we would halt production in 25th Feb, this Friday," an official from a major tungsten acid producer in south China told Asian Metal. As one of the only three tungsten acid exporters, the firm exported over 500t tungsten acid in 2004. Meanwhile, it keeps 1000tpy production capacity for APT, but due to the tight tungsten conc supply throughout last year, it total output was only around 500t for APT.
"Current tungsten market is extremely abnormal. Early this March, or two weeks later, we believe the current high price market might abruptly breakdown,” commented the source. He thinks that western users still hold sufficient stocks and are not hurry to get hand to mouth materials. Current booming market is only a false phenomenon manipulated by some interested parties, no real buying support.
"As we learn, buyers could only pay a price of around usd112-113/mtu for APT, while most of suppliers are quoting a price of around usd125/mtu. Moreover, a price of around usd112-113/mtu, if it is, has already been a good price, but we did not get such bids from our customers, while most of them are watching the market," said the source.
According to the source, it has already stopped purchasing new tungsten conc. Although current prevailing acceptable prices by sellers for tungsten conc. is around rmb53000/t, it refuse to purchase any if a price of tungsten conc is higher than rmb48000/t, which he believes has already been a top level.
As for the current APT price, he said that, in view of the current market trend, rmb85000/t should be much more reasonable, while it is around usd116/mtu for export in accordance with the domestic price level, although almost no deal was really completed on so high a price.
Asked the reasonable price of APT if any, the source thinks it should be usd90-95/mtu.
