Tungsten and vanadium prices rise

Tungsten prices in China rose amid tight spot availability and higher long-term contract offers from major domestic tungsten producers, but downstream buyers seemed to find it difficult to accept such high offers, market sources said.

Fastmarkets’ weekly price assessment for ferro-tungsten, export, min 75%, fob China, was $40-42 per kg W on Wednesday, narrowing upward by $1 per kg W from $39-42 per kg W a week earlier.

The corresponding weekly price assessment for tungsten concentrate, 65% WO3, in-whs China, was 124,500-126,000 yuan per tonne on Wednesday, widening upward by 500 yuan per tonne from 124,500-125,500 yuan per tonne a week earlier.

“I suppose the China tungsten market went up mainly due to already tight spot availability, and based on its own supply and demand situation, rather than being affected by the 2024 economy targets,” a China-based tungsten source said.

“We do not feel much confidence after the economic announcement in the Two Sessions,” a second China-based tungsten source said. “Tungsten downstream demand has not shown any improvement.”

Chinese vanadium prices rose following a month-long decline because many vanadium producers or traders have, to some extent, used up their inventories, but not because of the boost in confidence arising from the 2024 economic targets, market sources said.

Fastmarkets’ weekly price assessment for vanadium pentoxide, 98% V2O5 min, exw China, was 86,000-87,000 yuan per tonne on March 7. This was up by 2,000 yuan per from tonne from 84,000-85,000 yuan per tonne on February 29 but down by 3,000 yuan per tonne, 5.58%, from 89,000-90,000 yuan per tonne on February 8.

The corresponding weekly price assessment for vanadium nitrogen, basis 77% V, 16% N, exw China, was 131,000-134,000 yuan per tonne on Thursday. This was up by 1,000-1,500 yuan per tonne from 129,500-133,000 yuan per tonne on February 29, but down by 6,000-8,000 yuan per tonne, 5.91%, from 137,000-142,000 yuan per tonne on February 1.

“Honestly, I do not understand why the China vanadium prices rose this week because the weak downstream steel fundamentals did not change at all,” a China-based vanadium source said.

“I heard that the Central Bank of China intends to put more limits on financial aid to industries with overcapacity,” a second China-based vanadium source said, “which means that industries with excess production, such as ferro-alloys, will find it more difficult to get loans from the banks.

“Even though the China vanadium prices ticked up this week, I believe this will not last long, given the still sluggish real estate and infrastructure sectors,” the same source added.