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Tungsten Market Analysis 5-11: Weak demand, market stalemate

At present, the market is still in a stalemate. There are inquiries, but there are few transactions. Most of the inquiries still want to know the market. The reason why there are few transactions is that on the one hand, most buyers purchase raw materials in April, so they will mainly focus on digesting inventory in the near future. On the other hand, the main raw materials from mines to powders all think that the current price is a bit low, because tungsten mines are reluctant to sell, which makes downstream APT factories and powder factories passively reluctant to sell.

Furthermore, the main reason for the sluggish transactions is the severe contraction in demand. Weak demand triggered a series of chain reactions. Starting from the back end, due to poor demand and difficult price adjustment, coupled with overcapacity and fierce competition, the alloy end is extremely sensitive to changes in the price of upstream raw materials, which makes it difficult for the powder factory to keep up with the sales price and ultimately spread to the entire supply. Therefore, judging from the market situation of back-end alloys and products, it cannot bring the market a slight upward push, but will give the market some downward pressure.

At present, the global epidemic situation is improving, and countries are working hard to prepare for economic recovery, but this will take time, so I am afraid that it will be difficult to return to the level before the epidemic in a short time. As far as the tungsten market is concerned, as long as the mine continues to maintain the current level of reluctance to sell, even if the terminal demand is greatly reduced, the price of tungsten will remain at least strong and may rise slightly, but there is no market for transactions, and the existence of prices is meaningless. What's more, the mine will not always be afraid to sell.

If demand continues to slump, the bottom-up pressure will not decrease, and the period of cost support will continue, and the game between upstream and downstream manufacturers will continue. The room for tungsten prices to rise and fall will be very small. The confidence and patience of downstream manufacturers.

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