"One key question for the supply side of the tungsten sector is whether stockpiles from the failed Fanya minor metals exchange will be released onto the market. Inventories for the key tungsten intermediate, ammonium paratungstate (APT), were reported to have been nearly 30,000t (gross product) prior to investigations into the exchange starting in October 2015 – equivalent to around a quarter of primary tungsten supply in 2015, on a contained metal basis. It remains to be seen what path the government will choose to take – but market participants have suggested an auction, a government-backed redemption of the stocks, or a strategic stockpile as possible solutions.
Whichever option is picked, the stockpile is expected to weigh down on any significant tungsten price recovery until 2018. The mid-price for European APT was holding in the US$192-195/mtu range in Q2 2016, an improvement on the late January 2016 price of US$162.50/mtu but still some way below the peaks of US$464/mtu seen in Q3 2011 (all on a nominal basis)."
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