https://www.argusmedia.com/en/news/2241006-rising-demand-low-supply-fuel-eu-tungsten-price-rally
We "can't get material for love nor money," a buyer said. "Prices are moving rapidly and there is nothing in Rotterdam, with China shipments reaching by the end of August."
Europe's scarcity of APT is underpinned by severely depleted inventories combined with delayed shipments from China because of a global container shortage, port congestion and Covid-19 restrictions in many parts of the world.
European trading firms, consumers and suppliers drew down inventories in 2020 — after a supply surplus hung over the market in the previous year — as demand decreased because of the global pandemic. As a result, Europe was left with less spot supply as demand has revived this year. Low availability of containers also hiked freight rates, which contributed to increased costs for tungsten exports into Europe.
China's exports of tungsten products have been rebounding, up by 26pc year on year in January-June, customs data show. But this is from an unusually low 2020 baseline as Covid-19 disrupted operations, and the overall supply-demand balance remains very tight.
Tight feedstock supply pushes up costs
The APT market is also gaining support from high feedstock prices, with prolonged tight supply of concentrate and scrap pushing up consumers' input costs. Prices for min 65pc tungsten concentrate have risen to $240-245/dmtu in warehouse Rotterdam, their highest since 17 December 2018, when they stood at $230-260/dmtu.
Concentrate supply in China, the world's largest exporter, tightened and suppliers increased their offers to international customers. Fob China APT prices jumped to $295-300/mtu on 3 August, their highest since $310-320/mtu fob China on 23 July 2018.
Tungsten scrap prices have climbed sharply in recent weeks, with carbide scrap hitting a three-year high on rising demand for immediate usage and restocking. With manufacturing and industrial activity grinding to a halt during the height of the pandemic in 2020, less scrap was generated, which has reduced availability this year.
By Anuradha Ramanathan
Add to My Watchlist
What is My Watchlist?
