Tungsten prices hit bottom and rebounded to June levels. Positive market sentiment still needs to be cautious in the future.

Published: Oct 11, 2019 17:05

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Recently, the spot price of tungsten has gone out of a steady upward trend, which has rebounded by a large margin since the bottom of tungsten price reached bottom at the end of August this year. Tungsten prices have returned to mid-June levels in recent days.

SMM10 11: the recent tungsten spot prices out of a steady upward trend, is since the end of August tungsten prices stabilized after a relatively large recovery. Tungsten prices have returned to mid-June levels in recent days.

This also reminds SMM of the previous auction of tungsten in Pan-Asia. Prior to the Pan-Asian auction of 28000 tons of ammonium paratungstate, Luo molybdenum into the bag. Luo molybdenum Fanya APT inventory unit price of 115000 / ton, including the processing cost and the time cost of capital, the overall cost will be higher. In a sense, the cost of Lo Mo has basically become an anchor for the market to price now. Pan-Asian inventories hit the ground and the market rallied. After pan-Asian inventories hit the ground, market sentiment was generally bullish.

In addition, at the end of September, two large listed tungsten enterprises successively released the long purchase price of APT in late September, which was quoted at 12.5 yuan / ton and 135000 yuan / ton respectively, which was significantly higher than that in the previous period.

According to SMM, tungsten mines cherish the sale of concentrate, smelting enterprises procurement difficulties, less spot raw material prices rise, resulting in a rapid rise in downstream products, but paradoxically, the upstream rapid rise, and downstream terminal demand procurement has no increment, and SMM believes that after the National Day, enterprises will gradually return to work will gradually have products out of the shortage of resources should be weakened, so the follow-up rise is relatively weak. In addition, the extent of the rise still depends on the number of terminal demand, if demand fails to keep up, the buyer's will in the market is not strong, the rise will eventually stagnate. In addition, as prices rise, previous higher-cost goods will be released gradually, and the market supply will increase as well.

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