Wogen is appointed as the global distributor of Vietnamese ferrotungsten
2011-02-18 10:48:42 【Print】
BEIJING (Asian Metal) 18 Feb 11 - In the beginning of February, Vietnamese new ferrotungsten plant, ATC, announced that it is close to end of construction and will start test run soon. It will be the biggest ferrotungsten producer outside China. The mother company of the plant, Australian Hazelwood Resource Ltd, also announced the appointment of UK trader, Wogen Resources Ltd, being the global distributor.
Sarah Frigot, the trader in charge of tungsten and molybdenum products in Wogen, told Asian Metal that they are confident about the ferrotungsten market in the long run. “The Chinese government imposes high export duty on the material, and it is difficult for Chinese suppliers to compete with the Vietnamese producers and the smuggled material.”
Since 2008, China started imposing 20% export duty on ferrotungsten along with most of other ferroalloys because the production consumes high energy and is not environmental friendly. It is unlikely for the tax policy to change anytime soon, so the cost of exporting ferrotungsten is high for Chinese producers. Comparing the export volume of ferrotungsten from 2007 to 2010, the volume fell greatly from 6628.313t in 2007 to 1277.165t in 2010. The export volume in 2010 was less than 1/5 of it in 2007.
Besides the competition from foreign producers, Chinese producers also need to fight with smuggled material as well. According to market participants, more than 1000t of ferrotungsten were smuggled out of China in 2010. Sarah commented: “China will realize the problem and put more restrict control on the issue. If less material being smuggled out from China, producers out of China will be able to sell ferrotungsten at higher prices than now.”
At the moment, Hazelwood’s own mine production is still under construction. Before the tungsten concentrate supply is secured, Sarah thinks the new production in Vietnam will not have big effect to the market. The current price of ferrotungsten 75%min is USD45.50-46.00/kg W in Europe and Chinese producers offer USD49.00-50.00/kg W in export market.
Sarah Frigot, the trader in charge of tungsten and molybdenum products in Wogen, told Asian Metal that they are confident about the ferrotungsten market in the long run. “The Chinese government imposes high export duty on the material, and it is difficult for Chinese suppliers to compete with the Vietnamese producers and the smuggled material.”
Since 2008, China started imposing 20% export duty on ferrotungsten along with most of other ferroalloys because the production consumes high energy and is not environmental friendly. It is unlikely for the tax policy to change anytime soon, so the cost of exporting ferrotungsten is high for Chinese producers. Comparing the export volume of ferrotungsten from 2007 to 2010, the volume fell greatly from 6628.313t in 2007 to 1277.165t in 2010. The export volume in 2010 was less than 1/5 of it in 2007.
Besides the competition from foreign producers, Chinese producers also need to fight with smuggled material as well. According to market participants, more than 1000t of ferrotungsten were smuggled out of China in 2010. Sarah commented: “China will realize the problem and put more restrict control on the issue. If less material being smuggled out from China, producers out of China will be able to sell ferrotungsten at higher prices than now.”
At the moment, Hazelwood’s own mine production is still under construction. Before the tungsten concentrate supply is secured, Sarah thinks the new production in Vietnam will not have big effect to the market. The current price of ferrotungsten 75%min is USD45.50-46.00/kg W in Europe and Chinese producers offer USD49.00-50.00/kg W in export market.
