Market Nuggets: CPM: Chinese Conditions To Support Tungsten Demand Growth Over Long Term
Friday February 15, 2013 8:14 AM
Tungsten prices hit a two-year low in December but demand growth should be supported in the longer term by China's economy, says CPM Group. The consultancy released its 150-page Tungsten Market Outlook 2013, with an analysis of global supply, demand and price trends, with projections for the next decade. Tungsten demand, because of its heavy end-use applications in machinery and steel, is highly sensitive to worldwide economic conditions, CPM Group says. "Tungsten price activity over the past year largely reflected a slowing Chinese economy in which overall tungsten demand is estimated to have contracted in 2012," the consultancy says. "In addition, as prices rose precipitously in 2011, many consumers built inventories; these inventories were partially worked down last year. In December 2012, APT prices averaged, basis Metal Pages, $318/mtu (metric ton unit), the lowest level since December 2010. Over the longer term, CPM Group expects Chinese economic conditions to continue to support tungsten demand growth rates, albeit slower than in the previous decade."
By Allen Sykora of Kitco News [email protected]