Tungsten: Prices are slipping on increasing supply
purchasing.com
By Tom Stundza -- Purchasing, 11/15/2007
Tungsten prices are sliding slightly this month to an average $11.88/lb from improved supply, after averaging $12.49 in the domestic market for the past 10 months. For the 10 months before that, when supply was very tight, tungsten prices averaged $13.40/lb.
This month's slippage is being pinned to recent reduced metalworking activity by the automotive, appliance and machinery industries.
Looking ahead, tungsten prices may slip further since new supplies of tungsten concentrate are entering the world market, as expected, from new production facilities in the U.S., Peru, Australia, Canada, China, Spain, Thailand, Uzbekistan and Vietnam.
A North American supply executive recently told industry publication Metal Bulletin that, "We're seeing a lot of new capacity coming online, and there's just an awful lot of stuff out there today. The spot market will have no choice but to adjust to more realistic supply levels." |
