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Chinese W Price Rise, Not in West

  • Tuesday, August 30, 2011
  • Source:

  • Keywords:APT tungsten
[Fellow]
Western sellers of APT and FeW are not yet feeling any fall-out from a reported rise in tungsten concentrate prices in China. Positive about the outlook for demand for the rest of 2011, Chinese miners are withholding concentrate supplies, sources said. The miners are counting on output growth in China being limited and demand, especially domestic demand, rising strongly compared to 2010. In addition, the ongoing environmental crackdown on miners is keeping production in check. Tungsten concentrate spot prices have firmed to $372-377 per mtu compared to $370-372 per mtu two weeks before. China produced 63,116 mt of tungsten concentrates in the first seven months, roughly the same as in the comparable period last year. The output in Jiangxi province, where Jiangxi Tungsten is located, was up 12.5% to 29,819 mt, while the production in Hunan province, where Hunan Nonferrous is located, was down 6.64% to 14,816 mt.
 
Chinese domestic prices for APT also have increased, while export prices are stuck at $455-465 per mtu. APT prices did drift down in Western markets to the $440s earlier in the summer, and while the prices have recovered a bit, there has been little buying activity to move spot prices higher.
 
China exported 322 mt of APT in July, down from 527 mt in June, and down 53% from July 2010. Exports in July were 220 mt to Rotterdam, 78 mt to Japan and 14 mt to the US.
Ferrotungsten is trading at $48-50 per kg in Europe. US FeW sellers said they would be offering at around $24-24.50 per lb, but they have received no inquiries.
  • [Editor:editor]

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