Quiet export market for China tungsten smelters

BEIJING (Asian Metal) 15 Apr 05 - Although tungsten product prices increased again and again driven by limited supply, foreign buyers did not give strong support for the price hike by placing even regularly orders since the end of Spring Festival. At least, the prices concluded for those export contracts far lagged behind China domestic ones.

"The prices climbed up again this week to over RMB170,000/t (USD207/mtu) for APT from around RMB160,000/t (USD194/mtu) last week, while foreign buyers did not hence raise their purchasing prices," an official from Central China-based a major tungsten smelter told Asian Metal.

The smelter just sold out a batch of APT later last week at around RMB165,000/t(USD200/mtu). However, the smelter did not conclude deals for export in past weeks.Asian Metal Copyright "It over USD200mtu is only number of APT suppliers' good willingness.Asian Metal Copyright "The accepted prices for foreign buyers keep lower than domestic ones. It is really difficult for us to secure an order based on domestic market prices," said the official, "Calculating on current price of RMB170,000/t for APT, we should quote a price of around RMB210/mtu, but foreign buyers refuse to accept such a level, even for a price of USD190/mtu, which is also quite reluctant for them to agree with.Asian Metal Copyright "We have halted production for APT rather than purchase tungsten conc.Asian Metal Copyright"

Since later this Feb, the smelter did not purchase any tungsten conc, but consumes its previous stocks to produce small quantity of APT. "We have halted production for APT rather than purchase tungsten conc.Asian Metal CopyrightBEIJING Asian Metal 15 Apr 05 - Although tungsten product prices increased again and again driven by limited supply, foreign buyers did not give strong support for the price hike by placing even regularly orders since the end of Spring Festival.Asian Metal Copyright, which is too risky, at least in our eyes," said the official, citing that the price of tungsten conc remains relatively stable in past nearly three weeks, with a sudden decline sharply seen in later March.

The official believes the current contracted prices for APT should be a little lower than USD190/mtu, although some sources reported that the prices have surpassed USD200/mtu. "It (over USD200/mtu) is only number of APT suppliers' good willingness.Asian Metal Copyright"The prices climbed up again this week to over RMB170,000t USD207mtu for APT from around RMB160,000t USD194mtu last week, while foreign buyers did not hence raise their purchasing prices," an official from Central China-based a major tungsten smelter told Asian Metal.Asian Metal Copyright"

A major South China-based trader who has export licenses in hand confirmed the view for the export market. " Although the domestic market is abnormally booming and the prices rise to new levels day by day, the export market is not so brilliant," said the trader.Asian Metal CopyrightMarket sources claimed that it is just the Jiangxi Province-based smelter whoboasted the higher market prices for APT to some western media, which stands too far from China.Asian Metal Copyright The trader is one of 13 companies who got tungsten export licenses regularly every year.

According to the trader, it just concluded a deal last week for export at a price of around USD180/mtu for one container, with the material provided by a major tungsten APT producer in South China. At the end of the week before last week and early last week, the APT price was in a range of RMB155,000-160,000/t (USD187-194/mtu).Asian Metal Copyright, which is too risky, at least in our eyes," said the official, citing that the price of tungsten conc remains relatively stable in past nearly three weeks, with a sudden decline sharply seen in later March.Asian Metal Copyright

The trader plans to leave the market temporarily for no profit to make.

Whereas, a senior executive from a Jiangxi Province-based major tungsten smelter claimed that they are quoting prices over USD210/mtu for export. "As you can see, some major western media has raised the tungsten prices, there is no reason for us to sell on a lower level," said the source, insisting that a price lower than USD200/mtu is not acceptable.Asian Metal Copyright It is really difficult for us to secure an order based on domestic market prices," said the official, "Calculating on current price of RMB170,000t for APT, we should quote a price of around RMB210mtu, but foreign buyers refuse to accept such a level, even for a price of USD190mtu, which is also quite reluctant for them to agree with.Asian Metal Copyright

The smelter might be the only APT smelter who can now keep normal operation with hundreds of ton of monthly output for APT.

Market sources claimed that it is just the Jiangxi Province-based smelter who boasted the higher market prices for APT to some western media, which stands too far from China.