tungsten prices on the increase

The following from Metal-Pages

Chinese tungsten APT prices rally sharply as demand picks up

BEIJING (Metal-Page) 02-May-12. Chinese tungsten APT prices have risen sharply since the beginning of this week amid rising purchases and higher prices for tungsten concentrate, its main raw material.

Domestic prices for tungsten APT grade 88.5% are at RMB193,000-195,000, significantly higher than RMB189,000-191,000/tonne seen late last week.

“The purchases for tungsten APT have evidently picked up since the start of this week, pushing up prices,” said a source at a smelter in Hunan province. He said his company has sold some material at RMB193,000/tonne.

“The stocks held by smelters are not sufficient because many had stopped production last month. I think prices will go up even further this month,” a Jiangxi-based smelter source said, adding that the material has been quoted in the local market at as high as RMB196,000/tonne.

Despite the improvement in the domestic market, the export market for tungsten APT has remained quiet, with only a small amount of the material traded at $375-380/mtu.

“Traders are unwilling to sell now considering the large rally in the domestic market and the relatively tight spot supply from smelters,” said a trader in South China. He expects export prices to rally in the coming days.

-By Hellen Hu in Beijing([email protected])