Tungsten market has a good start to the new year. The price rises before the volume reaches the end of the year.

Tungsten prices continued to rise in the first week after the festival. Companies such as Zhangyuan Tungsten Industry (002378.SZ), Jiang Tungsten Group, Xianglu Tungsten Industry (002842.SZ) and other companies have recently released long single quotations for the first half of February 2022, all rising month-on-month compared with January. A reporter from the Financial Associated Press learned that trading in the market was light under the price increase, but the Winter Olympic Games superimposed production restrictions during the two sessions, and the supply was expected to be limited. At the same time, manufacturers held confidence in future prices.

As of February 10, mainstream manufacturers have released long order quotations for tungsten prices in the first half of February. Zhangyuan tungsten industry quotation shows that in the first half of February, wolframite concentrate (WO3 ≥ 55%) quoted 115000 yuan / standard ton, scheelite concentrate (WO3 ≥ 55%) quoted 113500 yuan / standard ton, ammonium paratungstate (national standard zero) quoted 178500 yuan / standard ton, up 1500 yuan / standard ton compared with the second half of January, and the price of ammonium paratungstate increased by 2500 yuan / standard ton.

A reporter from the Financial Associated Press learned from the marketing department of Jiang Tungsten Group that in the first half of February 2022, the national standard first-grade wolframite concentrate was 117000 yuan / standard ton, an increase of 2000 yuan / ton compared with the second half of January. In addition, the prices of other tungsten products have also increased to varying degrees.

Xianglu tungsten industry insiders told the Financial Associated Press today that the company's ammonium paratungstate acceptance price was 181500 yuan / ton in February 2022, an increase of 2000 yuan / ton compared with the second half of January.

In addition to mainstream manufacturers, tungsten prices also rose month-on-month in February.

According to the reference prices released online by China Tungsten on February 10, the quotations of wolframite concentrate and scheelite concentrate were 118000 yuan / ton and 116000 yuan / ton respectively, up 1000 yuan / ton from January 28, and the prices of tungsten products such as ferrotungsten and tungsten powder also increased slightly.

As for the reasons for raising the quotation, an industry insider told the Financial Associated Press that on the one hand, the factory holiday during the Spring Festival has led to a tight supply, on the other hand, the market as a whole is rising.

The aforementioned analyst told the Financial Associated Press that tungsten prices will also be affected by the general rise in commodities as a whole. in addition, affected by the opening red, tungsten prices basically have a wave of rise at the beginning of each year. However, this year still has its particularity. During the Winter Olympic Games, the upstream production is limited, and the supply is on the low side. At the same time, there will be some production restrictions in the upcoming two sessions.

As for the supply and demand under the rising prices, the above-mentioned industry insiders told the Financial Associated Press that since the beginning of the year, the transaction has not yet fully resumed, "but from the perspective of everyone's confidence, they are still optimistic about the price."

The above-mentioned analysts told the Financial Associated Press that overall trading is not very active this week, and the trading volume is on the low side. On the one hand, everyone is watching under the price increase, and the other reason is that some enterprises start work on the seventh day of the new year, but the production may be after the Lantern Festival. "Trading volume still depends on next week or after the Lantern Festival." But it also said that manufacturers are still optimistic about the future.

Price fluctuation is also one of the important factors affecting upstream performance. According to the reporter's statistics, at present, a number of industry companies have issued performance forecasts. Zhangyuan tungsten industry expects the deduction non-net profit in 2021 to increase by 651.41% 835.43% over the same period last year. The company said that the domestic tungsten market continued to improve during the reporting period. Sales volume, sales prices and gross profit margin of major products increased year-on-year. Xiamen tungsten industry expects net profit of tungsten, molybdenum and other non-ferrous metals business to increase by 74.61% in 2021.

From the perspective of the industrial chain, there are signs of transmission of tungsten metal prices before. Before the Spring Festival, affected by the rising prices of tungsten and cobalt materials and other factors, downstream cemented carbide products and cutting tools also rose. Listed companies such as 688308.SH and Zhangyuan tungsten industry successively issued price increase letters for related products. However, it remains to be seen whether the price increase will continue to be transmitted downwards. previously, people from the Securities Department of 000657.SZ told the Financial Union that unlike upstream products such as tungsten carbide powder, the prices of deeply processed products are generally not adjusted, the gross profit margin of downstream products is higher, and the pricing mechanisms of different companies are different, and the price transmission is time-lag.