Characteristics of the overall price trend of tungsten products in the past decade
From 2011 to 2021, the price of tungsten products in China experienced four peaks and three troughs. The overall market feature is that the price of tungsten products is obviously affected by both market and non-market factors, as well as the demand of domestic and international markets; The market price has not fluctuated much in the past decade, the price trend fluctuates less and the market is becoming more rational.
1) After the 2008 financial crisis, the world economy recovered rapidly, Factors such as supply constraints, strong demand, rising costs, and bull market resonance of bulk commodities in the tungsten market, Stimulated the price of tungsten concentrate to soar from the low of 59000 yuan/ton in 2009 to 156500 yuan/ton in May 2011 (some offers reached 158000 yuan/ton), its value is the historical highest price of tungsten concentrate in RMB.(related reading: what is the highest price of tungsten concentrate in history?)
2) After the bull market, the fear of high market sentiment and inventory clearing operation led to the negative decline of ore price to 103000 yuan/ton (August 2012).
3) Large scale hoarding by institutions and leading enterprises stimulated the price of tungsten concentrate to reach a high of 147000 yuan/ton in July 2013.
4) In November 2015, the price of tungsten concentrate hit the lowest point of 52000 yuan/ton in ten years, mainly due to market panic caused by the cashing crisis of Pan Asian Nonferrous Metals Exchange, unsalable tungsten products, upside down smelters, and a large-scale decline in the operating rate of tungsten enterprises. (Related reading: what is the historical lowest price of tungsten concentrate?)
5) China's environmental protection inspectors became stricter, strategic minerals were scarce and costs rose, and the ore price rose to 120000 yuan/ton (September 2017).
6) Due to the tense relationship between ZM, Pan Asian inventory concerns, and the decline of terminal demand for automobiles, the price of tungsten concentrate fell to 72000 yuan/ton (August 2019). On September 17, the Luoyang molybdenum industry purchased 28000 tons of apt at the price of 1153380 yuan/ton, encouraging the market to recover.
7) Since the beginning of this year, China's strong economic recovery after the epidemic has driven market consumption. During the year, the price of tungsten products generally showed an upward trend, and the ore price reached the peak of 114000 yuan/ton in August.
