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Tungsten price on the rise again.

China’sAPT export price continues to rise; supplies tight

Publishedby: Ruby Liu

8Jul 2021 @ 08:11 UTC

Exportprices for ammonium paratungstate (APT) from China have continued to rise, withChina’s domestic supply tightening and overseas markets in urgent need of thematerial due to low inventories, sources told Fastmarkets this week.

Fastmarkets’weekly price assessment for tungsten APT 88.5%WO3 min, fob main ports China was$282-292 per metric tonne unit (mtu) on Wednesday July 7, up by $7-10 per mtu,or 3.1%, from $275-282 per mtu.

Chineseexporters raised their offer prices, concerned that they would not be able toreplenish stocks at favorable prices with the domestic price rising, marketparticipants said.

“Iraised the export offer prices above $280 per mtu because the cost for APT isincreasing. It is difficult to source the material from domestic market due torestrained output in the past half year. Those who have materials on hand arealso very hesitant to sell and keep asking for higher prices,” a trader said.

Marketsources indicated that the APT price in China was about 152,000-155,000 yuan($23,480-23,944) per tonne on Wednesday, compared with 152,000-153,000 yuan pertonne a week earlier.

While,some sources said it was almost impossible to secure spot material below155,000 yuan per tonne when sales prices around 156,000 yuan per tonne emergedin the market.

“Beyonddoubt, the APT price will be firm and some downstream powder plants have feltcost pressures. The reference price for APT published by the Ganzhou TungstenAssociation (GTA) is also a proof of a strengthened APT market,” a secondtrader said.

GTAannounced its forecast price of 152,000 yuan per tonne for APT in July, whichis 6,500 yuan per tonne higher than that for June.

Sourcessaid that Chinese market participants usually refer to the GTA forecast pricewhen negotiating long-term contracts and use the price as guidance for pricetrend.

Overseasdownstream manufacturers were also facing a shortage of the key raw materialfor all other tungsten products, sources said.

“Ioffered a high price - above $290 per mtu - and overseas buyers confirmedpurchase orders without hesitation. This indicates the buyer either could notsource the material in their local market or that they have to pay more moneyto local sellers than it costs to import from China,” a third trader said.

Regardingtungsten concentrate, sources said market remains very tight, with evenlow-grade concentrate being sold at prices above 100,000 yuan per tonne.

Fastmarkets’weekly price assessment for tungsten concentrate 65% WO3, in-whs China was102,000-104,000 yuan per tonne on Wednesday, up by 2,000 yuan per tonne, or 2%,from 100,000-102,000 yuan per tonne previously.