Tungsten Market Remains Stable and Strong

Mysteel Daily: Tungsten Market Remains Stable and Strong

Date: January 8, 2024
Source: MySteel

According to the China Passenger Car Association, it is estimated that the wholesale sales of new energy passenger vehicles reached 1.13 million units in December, an increase of 50% compared to the same period last year and an 18% increase compared to the previous month. The cumulative wholesale sales from January to December 2023 reached 8.88 million units, a 38% increase year-on-year.

According to Mysteel's statistics, as of January 4, 2024, 13 automakers have released their December 2023 sales data for new energy vehicles. Among them, BYD (002594), Ideal Automobile, and GAC Aion ranked top three in terms of sales volume, with 341,043 units, 50,353 units, and 45,947 units respectively.

In terms of year-on-year growth, 10 automakers experienced an increase in sales of new energy vehicles in December, with Zhiqi Automobile showing the largest growth of 2,188.35%, followed by Lantu Automobile with a growth of 479.35%. In terms of month-on-month growth, 11 automakers saw an increase in sales of new energy vehicles in December, with Sailis (601127) showing the highest growth of 76.81%.

Tungsten Powder: This week, the quotation for tungsten powder is in the range of 270-273 yuan/kg, while tungsten carbide powder is in the range of 265-268 yuan/kg. The prices remain unchanged compared to yesterday. This week, there have been fewer inquiries in the powder market, and transactions mainly involve immediate needs. Upstream prices continue to remain strong, while the downstream market overall remains quiet but stable. Market participants are waiting for replenishment demands from the downstream market and the next round of quotations from major companies.

Cobalt Powder: The mainstream price range in the market is between 205,000 and 210,000 yuan/ton, which is unchanged from the previous trading day. The demand in the downstream hard alloy market is average, but there is a high level of stockpiling within the market. Some companies have saturated order volumes at the moment, and there is an active trading atmosphere before the end of the year. Quotations remain relatively firm within a small range, and it is expected that cobalt powder prices will stabilize in the short term.

Scrap Tungsten: The mainstream price for scrap tungsten grinding materials with a WO content of ≥90% is around 1.71 yuan/kWh (excluding tax), and the price for electrolytic tungsten carbide is 235 yuan/kg. Upstream quotations remain strong, and scrap prices remain stable. Trading by traders is relatively stable, and there is still a bullish sentiment for the future market. The scrap market is still showing an upward trend.

Hard Alloy: The hard alloy market is weak in demand and lacks positive factors to support it. Upstream prices remain strong and are showing an upward trend. Raw material powder procurement is also relatively strong. However, due to poor end-consumer demand and a lack of significant purchasing plans, there is little willingness to accept higher prices. Currently, there is only demand for essential purchases. It is unclear whether manufacturers will have replenishment needs before the year-end holiday, so the market is waiting for a surge in demand.