[SMM Comments] Tungsten market in February: Prices were slowly rising

SHANGHAI, Mar 6 (SMM) - In February, the domestic tungsten prices ended a stable year with high price levels, and continued to maintain a "stable and slightly upward" trend after the Chinese New Year holiday.

Supply

Around the Chinese New Year holiday, domestic tungsten mines successively entered the maintenance period, and the overall output of tungsten resources significantly decreased, which had effectively supported the strong trend of tungsten prices.

The inventory of mines were at a medium to low level. As tungsten prices were likely to continue to rise, shipments were limited.

APT smelters mostly shut down production for 10-15 days for maintenance during the Chinese New Year holiday, resulting in a significant reduction in output.

Demand

Around Chinese New Year holiday, the consumption of cemented carbide to a certain extent lowered the prices in the tungsten market. The upward trend of tungsten prices supported by costs thus slowed down, but related downstream companies still raised prices to ensure profits.

Some terminal companies reported that orders from the machinery and equipment industry increased, but that has not yet been transmitted to the alloy market.

Price

In February, the monthly average price of 55% wolframite concentrate was 122,400 yuan/standard ton; the monthly average price of APT was 182,600 yuan/ton; the monthly average price of tungsten carbide powder was 270 yuan/kg.

As of the end of February, as the production of tungsten mines had not returned to normal, tungsten prices still maintained a steady and slightly upward trend. The price of 55% black tungsten concentrate was consolidating at 124,000 yuan/mt, and trades were also cautious; the APT bargaining prices increased from 183,000 yuan/ton to 184,000 yuan/ton.

And entering March, there is still some upside room.

In March, the two sessions and a new round of environmental protection inspections may delay the resumption of mining in domestic tungsten mines. The tightening of raw material output will continue to strongly support the upward trend of tungsten prices. SMM expects that tungsten prices will continue to remain stable at high levels in the near future.