China's Tungsten Exports Hit a New High due to the Russia-Ukraine Conflict

SHANGHAI, Apr 25 (SMM) - According to the latest customs data, in the first quarter of 2022, China exported a total of 6,450 mt of tungsten products, a year-on-year increase of 28.1%. Among them, the cumulative export of tungsten trioxide was 1,503 mt, a year-on-year increase of 34.9%, and that of ammonium paratungstate was 744 mt, up by 40.4% year-on-year. The export volume of ferrotungsten was 952 mt, a year-on-year increase of 119.9%, and that of tungsten powder was 403 mt, a year-on-year decrease of 8.25%.

In March 2022, the export volume of tungsten trioxide, ferrotungsten, tungsten powder, and tungsten bars in China increased by 33%, 443%, 63.7%, and 1.3% respectively year-on-year.
Compared with the export volume of ferrotungsten in previous months, the export volume in March 2022 in China surged, with the total export volume standing at 543 mt, up 443% YoY and 119% MoM. Among them, 682 mt were exported to the Netherlands in March, accounting for 72% of the total, with an average price of 174,000 yuan/mt; 163 mt were exported to Japan, accounting for 17% of the total, with an average price of 195,000 yuan/mt; 83 mt were exported to South Korea, accounting for 9% of the total, with an average price of 173,000 yuan/ton; 20 mt were exported to the US, accounting for 7% of the total, with an average price of 211,000 yuan/mt; 4.5 mt were exported to Australia, accounting for 2% of the total, with an average price of 212,000 yuan/mt.
In March, with the full-scale outbreak of the Russia-Ukraine conflict, Europe and the US imposed economic sanctions and trade sanctions on Russia to varying degrees, hindering the exports of Russian resources. Due to the sanctions on Russia, countries that have demand for Russian tungsten products, especially for ferrotungsten, a product used in special steel, shifted their attention to China, hence the export volume of ferrotungsten in China increased sharply. In terms of price, prices of raw materials in China continued to rise, and the spot stock of ferrotungsten in March was not much, pushing up the prices of exported ferrotungsten.

Generally speaking, in the first quarter, the export of tungsten products in China was cheering. However, the export of tungsten products will be easily affected by unexpected situations such as the international situation and the airline transportation. In the long run, China is the main supplier of tungsten products, and the overall demand overseas is relatively stable. However, the continuous rise of prices will reduce the number of orders for some time, especially when international inflation is getting more and more serious, resulting in a sluggish market or arousing a wait-and-see sentiment in the market.

SMM expects that although there is a game between supply and demand in the tungsten market in the second quarter, the overall demand will support the downward adjustment of tungsten prices within a rational range.

Disclaimer:

The above representation and data is based on market information SMM believes to be reliable at the time of acquiring as well as the comprehensive assessment by SMM research team, and any and all information provided in this article is for reference only. This article does not constitute a direct recommendation for investment or any decisions in any form and clients shall act on their own discreet and any decisions made by clients are not within the responsibility of SMM.