In August, the Asian market witnessed a positive change in Tungsten prices with both Vietnam and China reporting a 1.5% increase as compared to the previous month. This upward trend is primarily driven by growing demand and key industry developments in both countries.

The Tungsten market in Vietnam is on the rise, primarily driven by the growing needs of the automotive industry. As hybrid vehicles become more prevalent, reflecting a steady interest in this automobile category, the Vietnam Automobile Manufacturers Association has recommended a reduction in excise taxes for these vehicles. They propose adjusting the tax from the current 70-100% down to 50-70%, aligning it more closely with the taxes on traditional fuel vehicles. In a move to invigorate the domestic car industry, the Vietnamese government has enacted a temporary 50% decrease in registration fees for locally manufactured and assembled cars, effective since August 30th, 2024. This policy is anticipated to escalate the demand for Tungsten, which is vital for numerous automotive applications. Additionally, the surge in apartment costs in Vietnam's key cities mirrors the broader economic expansion and construction boom, potentially leading to an increased use of Tungsten.

China's Tungsten market is also on an upward trajectory, with August witnessing another record high in new energy vehicle (NEV) retail sales. Despite a 1% year-on-year decrease in overall passenger vehicle retail sales, the figure still represented an 11% increase compared to July. However, China's recent export controls have caused concern within the critical minerals industry. Insiders worry that Beijing may leverage its global supply chain dominance in unprecedented ways. Industry experts anticipate that China will implement export control measures on Tungsten by the end of the year, potentially impacting global supply and prices.

Contributing to the optimistic economic forecast, Great Wall Motor (GWM) has entered into an agreement with Vietnam's Thanh An Group JSC (TAG) for the establishment of a complete-knocked-down (CKD) vehicle assembly plant in Vietnam. This new facility is anticipated to kick off its localized production and sales by the end of 2025, which may lead to an increased demand for Tungsten in the subsequent years. Concurrently, Tungsten Metals Group Ltd is gearing up for its listing on the Australian Securities Exchange (ASX) by the end of September 2024. With Asian economies on the rise and expanding, the Tungsten market is expected to see further growth. ChemAnalyst forecasts a surge in Tungsten prices in the Asian market in the coming months.