The tungsten market remains weak in terms of both price and activity.
European tungsten APT prices have been in the range of $390 to $405 since late May, according to Metal-Pages. Chinese tungsten APT export prices are lower, at $355 to $360, but buyers are still not showing any real interest.
On the domestic market, Chinese tungsten APT 88.5 percent min rose this week to $289 to $293 per metric tonne unit, Metal-Pages reported. That increase is believed to be associated with slightly higher concentrate prices. Still, the increases have done little as demand is lacking and there is a resistance to heavy participation in this market. Buyers are only willing to purchase what they need, and traders and miners who are not in need of immediate cash flow are largely holding out for better selling prices.
For September, the Ganzhou Tungsten Association lowered guide pricing. In a month during which a seasonal upswing is generally expected this move appears to have undermined confidence.
Even producers with contracts are feeling the pinch. Malaga (TSX:MLG,OTCQX:MLGAF), whose production is guaranteed to a single customer, reported a 13 percent decline in sales volume and an 11 percent decrease in selling price in its Q2 results.
With reports of manufacturing declines globally, the outlook for tungsten market improvement is unclear.