SHANGHAI, Oct 9 (SMM) - During the National Day holiday, the demand in the domestic tungsten market did not show any improvement, and remained weak.
On the one hand, the demand from alloy sector did not release. Against the background of general product homogeneity, there is a lot of pressure to sell through auctions. Therefore, both demand and prices have weakened. On the other hand, some mine-end traders were not optimistic about the future development of the market, and chose to ship during this period out of risk control, which drove the actual transaction prices lower.
Judging from the price trend in recent years, the domestic tungsten prices were still high. Amid the modest terminal consumption, the prices gain less support from demand side, and will continue to decline in the short term.
SMM believes that as mining may be restricted for a period of time in the future, the supply of tungsten concentrate will be affected to a certain extent. Downstream enterprises may consume part of the raw materials and spot inventory during this period to prepare for the later demand increase. It is expected that in the short term, the domestic tungsten prices will run a steady and decline slightly.
