European ferrotungsten prices mixed as speculation grows over changes to Chinese export duty
2013-11-14 09:05:46 [Print]
LONDON (Asian Metal) 14 Nov 13- Mainstream European ferrotungsten prices have held flat between USD45.60-46.60/kg W in warehouse Rotterdam this week, despite traders appearing upbeat and positive on the likely short-term pricing trend during an annual ferroalloys conference in Barcelona at the start of the week. Sources pointed out that availability of prompt release material from Rotterdam had tightened this month due to a lack of material being supplied by the large Vietnamese producer, both on a shipment and prompt release basis out of Rotterdam. With units being taken out of the market, many expected prices for the noble ferroalloy to increase.
However, there has been intense speculation in recent weeks of a potential change to the current 20% export tax placed on Chinese ferrotungsten. With an official announcement from the Chinese government expected by many sources in Europe in the coming days, current prices of the noble ferroalloy have remained mixed. Should the 20% export tax be eased, or potentially lifted, it would undoubtedly open up the supply side market, with Chinese origin material becoming viable to purchase in the West once again.
A large European trader of ferrotungsten claimed he was “surprised” and “disappointed” at the truckload purchase price of USD45.75/kg W d.d.p achieved by a large European steel plant on Wednesday afternoon, stating the somewhat tight availability of material had led him to expect prices to range between USD46.50-47.00/kg W in warehouse Rotterdam this week.
He explained, “The feeling at the start of the week in Barcelona was that prices for ferrotungsten would increase in the short term. There isn’t that much material available for prompt release out of Rotterdam, and figures of tungsten concentrate are firming up in Asia, so there are very few offers of shipment material at present.”
The source was aware of the growing speculation over the potential softening in the 20% export tax on Chinese ferrotungsten, and he added, “Should this tax be lifted at some point next year it would undoubted effect prices. There would be far greater supply of material from China entering into Europe, and the US & Japan. The removal, or softening of this tax has been on the cards for sometime as supply of the noble ferroalloy from producers in Vietnam, Europe and elsewhere all but diminished the export of Chinese ferrotungsten through legal means.”
A second European ferrotungsten trader commented that he has made small volume sales between USD46.00-47.00/kg W d.d.p to European steel plants since the start of November, but he too was surprised at the USD45.75/kg W d.d.p purchase prices achieved on Wednesday by a large European steel group.
On the potential removal of the current Chinese 20% export tax on ferrotungsten in 2014, the source commented, “My contacts in China have given very little away over the past few weeks, but speaking with sources in Asia, it is pretty clear there will be an announcement sometime before the end of November regarding changes to the tungsten export taxes and quotas.”
However, there has been intense speculation in recent weeks of a potential change to the current 20% export tax placed on Chinese ferrotungsten. With an official announcement from the Chinese government expected by many sources in Europe in the coming days, current prices of the noble ferroalloy have remained mixed. Should the 20% export tax be eased, or potentially lifted, it would undoubtedly open up the supply side market, with Chinese origin material becoming viable to purchase in the West once again.
A large European trader of ferrotungsten claimed he was “surprised” and “disappointed” at the truckload purchase price of USD45.75/kg W d.d.p achieved by a large European steel plant on Wednesday afternoon, stating the somewhat tight availability of material had led him to expect prices to range between USD46.50-47.00/kg W in warehouse Rotterdam this week.
He explained, “The feeling at the start of the week in Barcelona was that prices for ferrotungsten would increase in the short term. There isn’t that much material available for prompt release out of Rotterdam, and figures of tungsten concentrate are firming up in Asia, so there are very few offers of shipment material at present.”
The source was aware of the growing speculation over the potential softening in the 20% export tax on Chinese ferrotungsten, and he added, “Should this tax be lifted at some point next year it would undoubted effect prices. There would be far greater supply of material from China entering into Europe, and the US & Japan. The removal, or softening of this tax has been on the cards for sometime as supply of the noble ferroalloy from producers in Vietnam, Europe and elsewhere all but diminished the export of Chinese ferrotungsten through legal means.”
A second European ferrotungsten trader commented that he has made small volume sales between USD46.00-47.00/kg W d.d.p to European steel plants since the start of November, but he too was surprised at the USD45.75/kg W d.d.p purchase prices achieved on Wednesday by a large European steel group.
On the potential removal of the current Chinese 20% export tax on ferrotungsten in 2014, the source commented, “My contacts in China have given very little away over the past few weeks, but speaking with sources in Asia, it is pretty clear there will be an announcement sometime before the end of November regarding changes to the tungsten export taxes and quotas.”
