People begin to talk possible sudden turnback for tungsten price
2005-03-31 09:07:20 【Print】
BEIJING (Asian Metal) 31 Mar 05 - As the market price of tungsten products keep skyrocketing to current incredible level, industry participants begin to speculate when the price would turn back. Even some smelters claimed that the market has shown some signs of declining down.
"We stopped quotation this week. We want to make the market trend clear before taking any further actions," an official from one of the largest cemented carbide smelters in South China told Asian Metal.
Later last week, the smelter quoted a price of over USD170/mtu, but foreign buyers refused to accept by saying that it was a too high price level, while the source believes that current workable ones if any should be in a range of USD150-160/mtu. "Even majors like us, with around ten thousand APT production capacity, don't know what a price should we quote and where the market is going to," said the source.
According to the source, for the serious shortage of tungsten conc as well as the skyrocketing price, it has to postpone its previous long-term contracts again and again. "We have halted several production lines in some of our operations."
The smelter has its own white tungsten conc mines, but it has to purchase some black tungsten conc to mix for APT production.
The source said that local market prices for tungsten conc are quoted at RMB95,000/t, but it believes that workable ones should be some over RMB80,000/t.
The source can not give a judgment for the further market going.
"We just sold about ten tons of APT late last week at a price of RMB140,000/t, but this week, some partners in local market said that the price has began to turn back," an executive from a small tungsten smelter in Jiangxi Province told Asian Metal. But the source refused to give more details on the price slip.
Later last year, the smelter sold two of its APT smelting plants and one tungsten mine to Minmetals China, Now it is regretting on that decision. However, it is constructing another tungsten dressing plant, with annual production capacity of 1500t for tungsten conc with WO3 65%min. The new project is planned to put into operation before China National Day, 1st Oct.
"It is very normal. According to our historical experiences, at the time of each year, the price begins to decline and this year would be surely not a special case," said the source," As late as the mid of this April, the price would begin to drop down. Possibly, the price would touch the short-term bottom at RMB55,000/t or so for tungsten conc, almost returning to the level before the Spring Festival."
"It is quite incredible for the market to suddenly turn back sharply, but people are talking about the matter. It is said that some major players are releasing tungsten conc stocks little by little," said a sales manager of a smelter in Hunan Province. The smelter, with 900tpy production capacity for APT, unwilling to give any price idea on current tungsten product price, but only keeps saying that a sharp price turnback is incredible.
A tungsten powder smelter in Sichuan Province reported to Asian Metal that it purchased about 10t APT later last week at around RMB150,000/t. The smelter with 30tpm production capacity for combined tungsten powder and tungsten carbide sells its tungsten powder at around RMB250/kg for middle size.
"We stopped quotation this week. We want to make the market trend clear before taking any further actions," an official from one of the largest cemented carbide smelters in South China told Asian Metal.
Later last week, the smelter quoted a price of over USD170/mtu, but foreign buyers refused to accept by saying that it was a too high price level, while the source believes that current workable ones if any should be in a range of USD150-160/mtu. "Even majors like us, with around ten thousand APT production capacity, don't know what a price should we quote and where the market is going to," said the source.
According to the source, for the serious shortage of tungsten conc as well as the skyrocketing price, it has to postpone its previous long-term contracts again and again. "We have halted several production lines in some of our operations."
The smelter has its own white tungsten conc mines, but it has to purchase some black tungsten conc to mix for APT production.
The source said that local market prices for tungsten conc are quoted at RMB95,000/t, but it believes that workable ones should be some over RMB80,000/t.
The source can not give a judgment for the further market going.
"We just sold about ten tons of APT late last week at a price of RMB140,000/t, but this week, some partners in local market said that the price has began to turn back," an executive from a small tungsten smelter in Jiangxi Province told Asian Metal. But the source refused to give more details on the price slip.
Later last year, the smelter sold two of its APT smelting plants and one tungsten mine to Minmetals China, Now it is regretting on that decision. However, it is constructing another tungsten dressing plant, with annual production capacity of 1500t for tungsten conc with WO3 65%min. The new project is planned to put into operation before China National Day, 1st Oct.
"It is very normal. According to our historical experiences, at the time of each year, the price begins to decline and this year would be surely not a special case," said the source," As late as the mid of this April, the price would begin to drop down. Possibly, the price would touch the short-term bottom at RMB55,000/t or so for tungsten conc, almost returning to the level before the Spring Festival."
"It is quite incredible for the market to suddenly turn back sharply, but people are talking about the matter. It is said that some major players are releasing tungsten conc stocks little by little," said a sales manager of a smelter in Hunan Province. The smelter, with 900tpy production capacity for APT, unwilling to give any price idea on current tungsten product price, but only keeps saying that a sharp price turnback is incredible.
A tungsten powder smelter in Sichuan Province reported to Asian Metal that it purchased about 10t APT later last week at around RMB150,000/t. The smelter with 30tpm production capacity for combined tungsten powder and tungsten carbide sells its tungsten powder at around RMB250/kg for middle size.
