Supply disruptions hit Tungsten trends 2017: Supply disruptions hit
At the end of last year, research firm Roskill was expecting an overall tungsten price increase of around 20 percent for 2017; however, the metal’s actual increase far outpaced that estimation.
“The intensity of the price reaction to supply disruptions in China has been more extreme than forecast, which has caused our price range to be recalculated,” Merriman said.
He added that this price spike made news headlines and encouraged many junior companies to restart or accelerate the development of tungsten deposits.
“In 2017, the tungsten market experienced an overall increase in prices for APT and tungsten concentrate, though prices have fallen back slightly in more recent months,” he explained.
Between January and September, APT prices in China increased by 64 percent, reaching a peak of $316 per mtu. Since then, Chinese APT prices have fallen back to $290 in October and are expected to remain at around $280 to $290 in Q4 2017.
For Merriman, the most important development this year has undoubtedly been the constraints caused by environmental inspections in China, which have disrupted production at mines and processing facilities.