In the first week after the festival, tungsten prices continued to rise, Chongyi Zhangyuan Tungsten Co.Ltd(002378) (002378. SZ), Jiang tungsten group, Guangdong Xianglu Tungsten Co.Ltd(002842) (002842. SZ) and other companies recently released long list quotations in the first half of February 2022, rising month on month compared with January. The financial Associated Press reporter learned that the market trading was light under the price rise, but the production was limited during the two sessions in the later stage of the Winter Olympic Games, and the supply is expected to be limited. At the same time, manufacturers have confidence in the future price.
Tungsten prices continued to rise in February
As of February 10, mainstream manufacturers have issued long-term quotation of tungsten price in the first half of February. Chongyi Zhangyuan Tungsten Co.Ltd(002378) the quotation shows that in the first half of February, the quotation of wolframite concentrate (WO3 ≥ 55%) is 115000 yuan / standard ton, that of Scheelite Concentrate (WO3 ≥ 55%) is 113500 yuan / standard ton, and that of ammonium paratungstate (national standard grade 0) is 178500 yuan / standard ton, which is 1500 yuan / standard ton higher than that of two types of tungsten concentrate in the second half of January, and that of ammonium paratungstate is 2500 yuan / standard ton higher.
The financial Associated Press reporter learned from the marketing department of Jiangwu group that in the first half of February 2022, the national standard grade I wolframite concentrate was 117000 yuan / standard ton, an increase of 2000 yuan / ton compared with the second half of January. In addition, the prices of other tungsten products also increased to varying degrees.
Guangdong Xianglu Tungsten Co.Ltd(002842) insiders told the financial associated press today that in February 2022, the acceptance price of the company’s long order of ammonium paratungstate was 181500 yuan / ton, an increase of 2000 yuan / ton compared with the second half of January.
In addition to mainstream manufacturers, tungsten prices also rose month on month in February. Baichuan Yingfu relevant industry analysts told the financial associated press that the tungsten price has moved upward as a whole this week. “The ore, apt and tungsten carbide powder have basically increased, and they have increased again today (February 10).”.
According to the reference price released by China Tungsten online on February 10, the quotations of wolframite concentrate and Scheelite Concentrate were 118000 yuan / ton and 116000 yuan / ton respectively, an increase of 1000 yuan / ton compared with the average on January 28, and the prices of tungsten products such as ferrotungsten and tungsten powder also increased slightly.
Source: China Tungsten Online
do not change the manufacturer’s confidence until the transaction is completed
For the reasons for the increase in quotation, an insider told the financial associated press that on the one hand, the factory has a holiday during the Chinese new year, resulting in tight supply at present, on the other hand, the market as a whole is rising.
The aforementioned analysts told the financial associated press that at present, the overall rise of bulk commodities will also affect the price of tungsten. In addition, affected by the red start of the new year, the price of tungsten will basically rise at the beginning of each year. However, this year still has its particularity. During the Winter Olympic Games, the upstream is affected by production restriction, and the supply is relatively small. At the same time, there will be some production restriction in the upcoming two sessions.
For the supply and demand under the price rise, the above insiders told the financial associated press that since the beginning of the year, the transaction has not fully recovered, “but from everyone’s confidence, they are still optimistic about the price”.
The above analysts told the financial associated press that on the whole, the trading was not very active this week and the trading volume was low. On the one hand, everyone is watching under the price rise. On the other hand, some enterprises start on the seventh day of the first day of the lunar new year, but the products may be produced after the Lantern Festival. “The trading volume still depends on next week or after the Lantern Festival.” But it also said that manufacturers are still optimistic about the future market.
Price fluctuation is also one of the important factors affecting the upstream performance. According to the reporter’s statistics, at present, a number of Companies in the industry have issued performance forecasts, Chongyi Zhangyuan Tungsten Co.Ltd(002378) it is expected that the net profit deducted from non-profit will increase by 651.41% – 835.43% year-on-year in 2021. The company said that during the reporting period, China’s tungsten market continued to improve, and the sales volume, sales price and gross profit margin of main products increased year-on-year; Xiamen Tungsten Co.Ltd(600549) it is estimated that the net profit of tungsten, molybdenum and other non-ferrous metal businesses will increase by 74.61% year-on-year in 2021.
From the perspective of industrial chain, the previous price rise of tungsten metal has shown signs of conduction. Before the Spring Festival, due to the price rise of tungsten cobalt materials and other factors, downstream cemented carbide products and cutting tools also rose. Listed companies such as Oke Precision Cutting Tools Co.Ltd(688308) (688308. SH), Chongyi Zhangyuan Tungsten Co.Ltd(002378) successively issued price rise letters of relevant products. However, it remains to be seen whether the price increase will continue to be transmitted downward. Previously, a person from the Securities Department of China Tungsten And Hightech Materials Co.Ltd(000657) (000657. SZ) told the financial associated press that unlike upstream products such as tungsten carbide powder, the price of deep-processing products generally will not be adjusted, the gross profit margin of downstream products is high, and the pricing mechanisms of various companies are different, and the price transmission is sometimes sluggish.
