Chinese tungsten market participants expect prices to continue a steady uptrend in early 2021 given tightened supply of concentrate and robust prices for downstream products.
Sources told Fastmarkets that they have become more confident and rarely worry about price declines after experiencing sluggish market conditions over the past year due to the Covid-19 pandemic.
Firm concentrate market
Tight supply of tungsten concentrate and resultant firm prices for the material have lent support to the downstream ammonium paratungstate (APT) market, sources said, and estimated that the shortage of prompt cargoes of the raw material would not ease in the near term.
Fastmarkets' weekly price assessment for
tungsten concentrate 65% WO3, in-whs China was 88,000-89,000 yuan ($13,622-13,776) per tonne on Wednesday January 6, up by 1,000 yuan per tonne (1.1%) from 87,000-88,000 yuan per tonne a week earlier.\
Market sources attributed the tight supply of concentrate to output cuts, and said that production rates would not recover until prices reach a level that is profitable for producers.
Small-scale miners...