SHANGHAI, Feb 9 (SMM) - Since the beginning of February, a number of large tungsten companies continued to raise their quotations for tungsten concentrates under long-term orders. The rising prices raw materials have put great cost pressure on downstream cemented alloy companies. Even though the end demand has not picked up, many cemented alloy companies have announced to hike the prices of some cemented alloy products.
SMM statistic showed that tungsten prices were on a roller coaster in 2022, but a turning point occurred in late November last year.
Despite the limited demand for tungsten from alloy producers, the restocking demand at the end of year boosted the circulation of tungsten powder, allowing the market demand to trend higher. Supported by the bullish market sentiment, the mines and good holders restored the confidence and raised the prices. Meanwhile, large tungsten companies also increased their prices for long-term orders, promoting the tungsten prices to increase across the board.
Such a momentum has extended into 2023 as SMM tungsten concentrate prices hit a high of 119,500 yuan/mt on February 7. The main reason for the rise in tungsten prices lately was down to its scarce supply in the market when mines and goods holders held back from selling on upbeat sentiment. The demand is still in recovery, and could provide limited boost.
SMM expects that tungsten prices in February will go up steadily with strong cost support.
