Zhangyuan tungsten industry, Xiamen Jinlu Guan Xuan price rise tungsten market ushered in the rising tide at the beginning of the year? [SMM comment]

Recently, Zhangyuan Tungsten Industry and Xiamen Jinlu cemented Carbide Co., Ltd. have issued price increase notices. Zhangyuan Tungsten Industry announced that the company's costs have increased significantly due to the recent rising prices of tungsten and diamond, the raw materials of cemented carbide. The company decided that from February 16, 2022, cemented carbide bar products will be implemented at the new price. From the date of price adjustment, all products will be implemented at the new price.

Xiamen Jinlu cemented Carbide Co., Ltd. also informed that based on the continuous rise in the price of the main raw materials of cemented carbide and the tight supply in the market, which has led to the continuous increase in the company's production costs, in order to ensure the normal operation of the company's production and operation, the company has decided to adjust the sales price of cemented carbide bar products from February 14, 2022. For specific increases, please contact the relevant business personnel of the company.

On the spot side, on February 11, the average spot price of SMM wolframite concentrate ≥ 65% was 118500 yuan / ton. Since December, it has continued to show an upward trend, with an increase of 14% in just over two months.

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According to SMM, after the Spring Festival, the non-ferrous metals market generally ushered in a rising market, tungsten products are no exception. Since the opening of the market this week, as the guidance prices of institutions and large enterprises have been raised one after another, the prices of domestic tungsten products have continued to rise, and market confidence has been boosted. At present, the price of 65% wolframite concentrate is 11.8-119000 yuan per standard ton, and the price of APT has been raised to 180000 yuan / ton, both of which are significantly higher than before the festival.

After the festival, the supply of some production enterprises has not yet recovered, the price of tungsten raw materials is strong, and the quotations of manufacturers have been raised; under the transmission of raw material costs, the prices of middle and lower reaches products such as APT and powder have been adjusted accordingly. Although there is a certain acceptance resistance to the increase in costs from the upstream, large terminal cemented carbide enterprises have issued price adjustment letters one after another in half a week, informing them that due to the influence of rising tungsten raw materials and cobalt prices, enterprise alloy products have raised their quotations.

In terms of transactions, this week is the first working week after the festival, and the actual market transactions and enquiries are in fact general. The demand side is relatively cautious and trading is deserted during the week; with the end of the Spring Festival holiday, the factory will gradually resume work next week.