Tungsten Market Update (October 18, 2012)

Chinese tungsten prices have reportedly risen. Wolframite grade 65 percent has increased from RMB 102,000 to 105,000 to the range of RMB 103,000 to 106,000, according to Metal-Pages. APT 88.5 percent increased from RMB 158,000 to 162,000 to between RMB 160,000 and 163,000. Those increases do not, however, appear to be driven by strong demand. As has been the case over the past several months, some market participants are showing resistance to the idea of selling into this weak market and are holding onto their supplies.

Export prices of Chinese APT did not rise along with metal prices on the domestic market and are $340 to $345/mtu. That is similar to EU prices, which are flat at $340 to $360/mtu.

The tungsten market remains slow, with consumers continuing to avoid building inventories and instead purchasing on an as-needed basis. Due to the uncertainty that has been so prevalent in the market, consumers are whittling down their stockpiles. Many market participants are not optimistic that conditions will improve during this final quarter of 2012.