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Weak demand has not improved. Can the tungsten market buck the trend?

There is no sign of improvement on the demand side of the tungsten market this week. The feedback from most powder alloy manufacturers is that orders in July are worse than in June, but such demand has no effect on the stability of raw material prices. The prices of tungsten ore and APT are very strong, and it is difficult to buy raw materials at some low prices.

The most important reason that can support the stability of market prices is that tungsten ore is reluctant to sell and prices are firm. That is to say, no matter whether the demand is weak or not, the mine always keeps the price under control, which leaves no room for price reductions of downstream tungsten products unless orders are taken at a loss. .

¡¡¡¡ In addition, since several smelters in Jiangxi region stopped production for maintenance in July, some of their output was reduced, and the supply of APT was also decreasing, so APT prices were also very strong. However, the effect of this tightening of supply is only to maintain price stability, but it is difficult to drive prices upward. If the downstream is to accept the price increase of raw materials, it must be that the back-end products have some profit margins and the market must be liquid. Obviously, the current The market lacks liquidity.

At present, the price of black tungsten at 65 degrees is 80-81 thousand yuan/ton, and the price of 55-grade is 78-79 thousand yuan/ton. Now the price of APT is only 1.22-12.3 yuan/ton. The APT made of such tungsten sand is still somewhat upside-down. .

From the perspective of demand, it is not optimistic. Since July, the market demand has weakened a bit. On the one hand, the downstream alloy manufacturers have to digest inventory, on the other hand, they must try to maintain low-risk inventory, and most importantly, their own orders are not good. , Reserve inventory is of little significance. The export market has not improved at all, and some European companies have not yet fully resumed work, and they have begun the summer break, which makes the export situation even more severe.

¡¡¡¡Overview, reluctance to sell mines supports market stability, weak demand, fierce competition for back-end products, difficulty in price adjustments, shrinking profit margins, and often out of touch with intermediate product prices. The market lacks liquidity. The recent flood disaster situation in northern Jiangxi is critical and it has not yet affected the production of tungsten. In the short term, when demand does not improve, it is very difficult for the market to increase prices against the trend and maintain the current stalemate. It is more likely.

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