SHANGHAI, May 26(SMM) - Tungsten prices stabilised after falling for a while as the weekend approaches.
The prices of wolframite concentrate remained at $1.54/kg degree. APT small order prices stagnated at 170,000 yuan/mt, with more inquiries that prices were mostly below 170,000 yuan/mt and fewer actual transactions. The transaction prices of tungsten carbide in Jiangxi moved around 260 yuan/kg, with inquiries floating around 258-260 yuan/kg and no increase in new orders from private enterprises.
In the past 1-2 months, the domestic market has remained sluggish, and there were few small order inquiries and transactions in the upstream and downstream of the tungsten industry chain. At present, the demand in the downstream market was still low, which has not returned to normal level. The costs were high at downstream and terminal producers, with prices at a standstill.
The market remains wait-and-see as large enterprises are about to quote, while downstream producers plan to restock. If the trading volume does not pick up after the quotations of long-term orders are made by large enterprises, smelters may still choose to cut prices to collect funds even under the high costs and it is likely that APT breaks through 170,000 yuan/mt.
In general, the sales of upstream and midstream products seemed to pick up, which was supported by the positive macro news, but it still needs the support of actual downstream production demand. The market shall focus on the impact of future market transactions on tungsten prices.
