tungsten remains the star, page-16

Tungsten buyers will travel to Berlin with apprehension

London 09 November 2010 16:26

Tungsten buyers will be arriving at MB's 26th Ferro-alloys Conference in Berlin next week with a certain measure of apprehension as they face the prospect of record high prices and diminishing supply, after China again slashed its export quota in a market that offers few alternative sources. Ammonium paratungstate (APT) prices have reached $280-286 per mtu in Europe, while ferro-tungsten is now trading at $36-37.50 per kg. Both prices are approaching record highs, with APT peaking at $285-295 per mtu in Europe in July 2005, and ferro-tungsten reaching $40-42 per kg in March 2008. But when those high prices were reached, a swift pullback followed as market participants came to realise that prices had been overdone. This time, there is no such feeling and prices are high because the market is fundamentally tight, buyers and sellers said. "The fundamentals are the reason prices are going up," a trader said.