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Tungsten City Analysis 5-18: The market enters a delicate moment

Last week, the price of tungsten continued to rise slightly, the main driving force is still difficult to buy tungsten mine, but the skyrocketing market is obvious. Most people in the industry believe that the increase in tungsten prices is inconsistent with the actual market demand. Therefore, the market bearish sentiment coexists with price increases, which makes this week's market very subtle.

    For mining companies, it is just a pity that sales increase prices, and there is no real gains. The price increase with few transactions is a skyrocket. For some traders and some hot money, today's prices already have a certain profit margin. If there is still no transaction to follow up, then the supply side will become very unstable. And as long as the mining companies show some positive intentions to ship, it is very likely that downstream companies will become extremely cautious, and the possibility of downstream orders is very small, of course, except for the necessary rigid needs.

    The smelter still has a dilemma. It cannot accept the rise of tungsten ore and cannot sell its products to a suitable (not up to price) price. Therefore, some smelters have been forced to stop production. There are few factories. Last week, smelters raised the price of APT to RMB 142,125 / ton, and a small amount of transactions did reach this price, but this part of transactions was rare. The purchase price of tungsten enterprises is lower than the bulk price. And, there will still be quotes from large tungsten companies this week. It is unknown whether they can follow up.

    The price increase of tungsten sand is difficult to buy and the downstream price is lowered. The pressure on both ends makes many smelting companies miserable. For downstream customers, the smelter has a relatively small say, so they can only hope that the mine price can be lower, so that later There is only room for operation, so this is why the smelter would rather stop production than production. If the production of smelters ceases to increase, the direct consumption of tungsten sand will decrease, and the pressure will be transferred to the upstream mining enterprises.

    Judging from the current global economic situation, the reduction in tungsten consumption has become a reality, and recovery is hopeless. Powder alloy factories are almost uniformly pessimistic about the market outlook. This pessimism is, of course, affected by a series of negative factors caused by the outbreak of the epidemic, on the other hand, it is also determined by objective factors that reduce its own orders.

      In May, powder alloy factories generally reported poor orders, large powder alloy factories were relatively good, and those with a small export share were relatively good. However, when demand generally declined, the negative impact of overcapacity would be magnified. In order to guarantee the order quantity and production, some manufacturers dared not increase the price. This also made the price of powder not significantly increased during the current round of price increase. The current price of tungsten carbide is only maintained at 188-190 yuan / kg , Medium particle tungsten powder 190-193 yuan / kg.

    To sum up, only by controlling the circulation of tungsten ore can prices be maintained or increased, but only if prices are increased but no transaction is reached, there will be no market conditions. For a long time, the market is no longer stable. If the mines and traders then ship at the current market price or higher than the market price, then the market will undoubtedly be strong, because after all the demand has not been reduced to zero. This week, long-term orders for large tungsten companies will be signed. Will these companies accept the current prices? Moreover, the trends of trading factories and mines are also worthy of attention

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