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Prices are firmly supported by mines

Last week, the tungsten market ended steadily. Several large-scale tungsten companies reported long single prices, which basically remained the same, indicating that these companies hope that the market will be stable.

In addition to long orders, there are few transactions in bulk cargoes. The main reason is still poor demand. On the one hand, manufacturers must digest inventory, and also try to maintain low-risk inventory. The most important thing is that their own orders are in poor condition and reserves Inventory is of little significance. For traders, there is no operational space and expectations at this time, so the current market looks stagnant.

”””” From the supply point of view, the supply of tungsten ore is still tightening. This tight supply is not because there is no tungsten sand, but it is reluctant to sell, which means that the mine has been hoarding inventory.

”””” The price of 65 degrees black tungsten is 80-80 thousand yuan/ton, 55 grade is 78-79 thousand yuan/ton. This price is neither satisfactory to the mine nor the downstream smelter. The reason why the smelter buys at this price is to maintain production.

”””” In addition, the pressure on mine funds is relatively small, and the loose financing loan method, coupled with the shipment of mines to traders and hot goods in the first half of the year, makes the mines more abundant, and the low price will not cause any impact in the short term. Therefore, some mines prefer to keep inventory rather than sell them at low prices. This is more difficult for the smelter. The price of APT is always on the verge of being upside down. It is very difficult to increase the price to more than 122,000 yuan/ton. It will be normal for the smelter to stop production and reduce output this year.

”””” From the demand side, July entered the traditional low season, affected by the epidemic. Since March, the market has reduced consumption, but by July, the market seems to be worse than the previous months.

””””The export market has not improved, and some European companies have not resumed their work completely, and they have started the summer rest again, which makes the export situation more severe. In addition, it can be seen from Sandvik's layoffs that foreign demand has been greatly affected. In addition, the competition of the powder alloy end is becoming more and more fierce. The low price transaction makes it difficult for the powder factory to maintain stability. For the powder factory, it is still a dilemma to guarantee the price when it comes to guaranteeing the order.

””””Summary: At present, the mines are reluctant to sell, and the intermediate products are disconnected, and the upside down market has occurred frequently. The market lacks liquidity, and there is no market for transactions, and prices are meaningless. In the short term, the market stalemate in the weak market may continue.

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