The ferro-tungsten market has been stagnant in recent weeks, with only a handful of transactions taking place. Last Friday, in China, inactivity translated into a dip in prices. Ferro-tungsten fell to $25.90 a kilogram, down from the recent rate of $28.00 per kilogram.
Chinese ferrotungsten export prices have been creeping up since the conclusion of the spring festival in January. Low prices in the fourth quarter of 2008 pushed many key tungsten producers to stop operations. The same miners have announced, that despite the current trend, they do not plan to resume mining and production in short term.
Hazelwood Resources reported that all outstanding assays from the recent drilling program at the Company’s wholly owned Big Hill Tungsten Deposit have now been received. For more information, click here
European Ferro tungsten prices crept up for the week as buyers drew down inventories in Rotterdam. For a second week in a row, the Lunar New Year Holiday in China meant lack of supplies were coming out of the country.
Holiday retail sales were worse than anticipated. The jewelry market was hardest hit, luxury goods sales were down as much as 34%. However, the new Tungsten jewelry market faired exceptionally well over this holiday season.
Shenzhen, the Chinese city that accounts for 60 per cent of China’s total annual exports, is witnessing declining demand for tungsten. In 2007, the latest year for which industry data is available, it shipped $23 million worth of tungsten carbide powder and alloy jewelry.
Tungsten, like all the other metals, has seen a large amount of its value lost in the 2008 market crash. However, some stability has been lent to tungsten due to the fact that China has a monopoly on the market.
Tungsten, like all other metals has witnessed a precipitous price drop. Data coming out of China, producers of around 85% of the world’s tungsten, shows that most of the Chinese Ferro-tungsten makers have either shut down or decreased output.
The tungsten market is witnessing consistent growth as development around the globe in national defense, civil and war industries are using up all the tungsten supplies they can get their hands on.
Tungsten prices have managed to hold steady while all the other base metals dive. In 2004, tungsten was worth US $60 per kilo, and now it oscillates around $260 per kilo. Tungsten’s value is due to its exceptional properties.
Get our independent commentary on tungsten trends and companies delivered to your inbox.
