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Low-priced inventory outflows

The price of tungsten raw materials continued to fall. The main impact came from the outflow of low-priced stocks, which were mainly from the stocks of stocks in July. In addition, some traders with low-priced stocks and manufacturers who needed money. It is also being shipped one after another, mainly represented by tungsten ore and APT. The price of tungsten ore is relatively large, but the manufacturer is limited by the production cost, and the possibility of large-scale low-price selling is not high. Consumption of low-priced stocks.

As the price of raw materials falls, the downstream take-off is more cautious, unless it is necessary to take over, otherwise try to maintain a wait-and-see attitude. There are three kinds of situations that must be taken over. First, just need it, you have to buy it because production is used. Second, old customers, long-term cooperation, when buying prices, they can buy raw materials, and maintain the relationship when the price is dropped. This situation is represented by long orders. Third, the price is attractive enough. Therefore, the recent transactions are dominated by the above three situations, but in either case, the inventory is digested rather than hoarded.

The price of tungsten ore is 92,000 yuan/standard ton. It is very difficult to sell. This round of shipments is mainly based on hot money. Some mines that lack funds are also shipping. The 55-grade tungsten sand is difficult to keep at the 1.3 yuan/kg level. The loosening of the supply side corresponds to the tightening of the demand side, which makes the supply and demand situation in the short-term market unbalanced. Now, between the upstream and downstream, it is necessary to find a suitable price as a balance point.

The APT market has a false high offer, and the price of 145,000 yuan/ton has been difficult to sell. Although the downstream companies have a small inventory of APTs, due to careful consideration, most buyers maintain a wait-and-see attitude. The market also reported some low-price deals, but it is understood that this part of the low price mainly comes from the low-priced reserve of the previous hot money. Because the current profit is considerable, so the sale is chosen, and the smelter sells at a low price. The smelter received some high-priced tungsten sand in the early stage, so the low-priced sale in a short period of time is definitely small. The APT market will still focus on digesting low-priced stocks in the near future.

The tungsten powder was mainly sold with a small amount of rigid replenishment. At present, the price of the medium-grain powder is maintained at around 230 yuan/kg, but the transaction has been difficult to achieve, and the price is 225 yuan/kg-230 yuan/kg. Moreover, the price of raw materials has risen too fast, and it is out of line with the alloy market. Due to the poor demand in the alloy market, the price adjustment is difficult. The last round of price adjustment is not satisfactory. Many manufacturers have nominally adjusted prices. In fact, they have not adjusted prices according to normal conditions. It is even harder to raise the price. Based on this, the price of raw materials acceptable at the alloy end is limited, and the upstream and downstream markets are mainly looking for a new balance point.

In summary, the decline of the tungsten market is not necessarily a bad thing. The low-priced warehouse will flow out of the market sooner or later. Now this part of the unstable factors appears in advance, which is also favorable for the subsequent market trend, and the price rises too fast to cause raw materials and alloy products above the powder. In the event of a disconnection, the back-end products are difficult to follow up, which will lead to poor market liquidity. After adjustments in the near future, upstream and downstream manufacturers have to find new balance points so that both parties can accept them.

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