Tungsten steadies

The European tungsten market has steadied, after experiencing a period of decline in recent weeks. The mood reflects the Chinese market, where prices have also leveled off, with tungsten concentrates prices strengthening and looking poised to rise further on the back of another mining accident this month.

Western trade sources admitted, though, that “there was nothing to write home about”. “Tungsten is pretty quiet,” said one major western trader, who added: “This is really down to the tendency for consumers to buy hand-to-mouth. The Christmas holidays have impacted, to some extent, but really it’s all down to people sitting on the fence, waiting to see how the market develops. There is further concern over whether China will impose export taxes on tungsten and other commodities.”

He put prices for ferro-tungsten at around $33/kg with APT in the mid-$240s, but believes the price could pick up next year. “The recent mining accident, and subsequent closure of some Chinese operations, has drawn a line under the concentrates price. The market would appear to have bottomed,” he added.

As far as concentrates are concerned prices are now reported at Rmb106,000-111,000/tonne (US$209-218/mtu).

Some miners have ceased quoting for tungsten concentrates in the past two days, as the impact of the Hunan mine accident, which killed 12 people early this month, takes its toll.

Meanwhile, in Europe, a tender for 20 tonnes of ferro-tungsten in Germany was reportedly concluded around $33.30/kg delivered. Other trade sources put the market slightly lower at $32.20-32.80, with APT around in the low to mid-$240s.