Tungsten Market Update (March 29, 2012)

By Michelle Smith — Exclusive to Tungsten Investing News

The global economy appears to be weighing on the Chinese tungsten market, which is seeing weak demand and falling domestic prices. The situation has reached the point that some smelters have reportedly stopped production. The China Chamber of Commerce of Metals, Minerals & Chemical Importers & Exporters (CCCMC) is not expressing optimism that circumstances will change during the first half of the year.

As is commonly seen, the drop in China’s domestic prices has not resulted in the export price for APT being reduced accordingly, so it is still reported at $390 to $395/mtu. On the international market, APT prices have also remained firm over the past month, still in the range of $430 to $440.

It should be noted that the weakness in the Chinese tungsten market has prompted the CCCMC to suggest that the government implement production quotas and encourage the production of high-value tungsten products.