Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Commodities - The Coming Bull Market -- Ignore unavailable to you. Want to Upgrade?

To: craig crawford who wrote (839)	10/10/2001 7:00:07 PM
From: craig crawford	Read Replies (1) \| Respond to of 1643

Tungsten roskill.co.uk Stockpiles fill output deficit A prolonged period of relatively low prices for tungsten, triggered by oversupply in the industry, has forced many Western producers out of the market. Furthermore, the break up of the former USSR led to a collapse in tungsten production in that region. As a result, China is now the predominant tungsten producer in the world, accounting for almost 85% of global output in 1999. The significant decline in tungsten production since the late 1980s has created a gap between output and consumption. Consequently, combined output of tungsten in 1997, 1998 and 1999 represented only around 80% of estimated consumption over the same period; the deficit has been made up by supplies from stockpiles. In the short to medium term, the outlook for tungsten supply will be closely linked to the production situation in China, and the level of releases from stockpiles in Russia and the USA. In recent years, key factors - including general economic conditions, disposals from stockpiles, as well as Chinese government policy - have combined to keep tungsten prices low. However, prices began to pick up in late 2000, as shipments from stockpiles declined and were not fully replaced by production. Overall, supply side factors are likely to dictate tungsten price movements in the short term: tungsten prices should continue to rise, and will not stabilise until production increases, and supply and demand come in to balance. The key trends, issues and developments in the tungsten market are now analysed in this major new report from Roskill. It provides a clear insight into all areas of each industry and an authoritative analysis of the prospects for the future .............................................................................................................................. REPORT HIGHLIGHTS Since 1993, production of tungsten has fluctuated in a narrow range between 30,000 and 35,000tpy. In 1999, output was estimated to be 35,610t. Western Europe has the largest share of tungsten demand, accounting for over 30% of the world total. North America and China each represent around 25% of the market, while Japan accounts for a further 12 to 13% of consumption. The usage of tungsten scrap is estimated to be as high as 30% in some countries, and the incentive to use scrap increases as prices for tungsten rise. The level of scrap usage is therefore an important factor which may limit growth in demand for virgin tungsten. The most promising area of growth for tungsten demand is in the manufacture of armour-piercing projectiles, particularly for small calibre ammunition. Environmental concerns over the use of Depleted Uranium (DU) in larger calibre projectiles and lead in small calibre ammunition has led to extensive research into alternative materials. It now appears likely that lead-based bullets will gradually be replaced with tungsten-based bullets.