Tungsten market long-term steady,short-term wait and see the demand risk
The domestic tungsten price continuously goes up this week. Increased quotation in large tungsten companies in the second half month, second increased price in this month in hard alloy enterprises and the news the recover data of tungsten products export,further stimulate raw material market to go up.With the rapid price increasing of the tungsten products,the manufacturers can profit but the intention to sell is not high.Due to the different psychological attitudes between sellers and buyers,spot purchase and sales willingness and transaction negotiations show a cautious stalemate.
We can know a little the hot market this round from the price adjustment letter of the hard alloy enterprises.The greatly rising price of the tungsten and cobalt raw materials,the upgrading product manufacturing process,the added cost of logistics and freight and the labor,the change of goods and economic situation and so on,caused the increase of production and operation input so that the sellers have to adjust the product’s price.
It is worth noting that there is no obvious highlight in wait-and-see demand side.Due to the cost side,the profits of the intermediate smelting manufactures and downstream enterprises are compressed,and actual transaction in the spot market is restricted. The enterprises order situation is poor,and trade atmosphere tends to be cautious.Most enterprises prepare goods according to the demand.
General speaking,for the future market,there are differences between sellers and buyers,but the overall mood is stable or bullish.With the rapid growth of domestic demand driven by the new infrastructure,new energy and other concepts,and the overseas epidemic prevention and control and economic recovery,there will be medium and long term steady status in the tungsten market.The possibility short-term market suddenly reversal is low because of the alloy product synchronous following up,but the stability and sustainability are still to be verified,wait and see the actual demand data and participants’ subjective risk preference mood.