For the Quarter Ending December 2024
North America
In the fourth quarter of 2024, the North American tungsten market displayed a marginal upward trend, with prices increasing by 0.5% quarter-over-quarter. This stability was maintained despite supply chain challenges and fluctuating demand dynamics. The market concluded with Tungsten Bar W-4 (99.9%) CFR San Diego priced at USD 87,800/MT, reflecting the region's resilience in navigating geopolitical and economic complexities.
In the United States, the manufacturing sector showed signs of recovery, albeit remaining below optimal levels. Supply dynamics were influenced by global factors, particularly China's dominance in tungsten processing and an impending 25% tariff on Chinese tungsten imports. This spurred preemptive procurement in December, adding to year-end stockpiling activity. Limited mining inventories and maintenance shutdowns further tightened the supply chain, while downstream demand from automotive, aerospace, and electronics sectors provided support.
The aerospace and defense sectors drove significant tungsten demand, supported by increased production of rocket engines and air defense systems. Automotive sales rose notably, and the electronics industry remained a steady contributor. However, some downstream industries, such as carbide and hard alloys, faced reduced orders and profit margins, highlighting uneven market conditions. Overall, the tungsten market exhibited cautious optimism, with strategic adjustments expected in 2025.
Europe
In the fourth quarter of 2024, Tungsten prices in Europe exhibited a marginal upward trend, with a 0.5% quarter-on-quarter increase. This stability reflects a balanced market environment, supported by steady supply from key global producers and resilient demand across various sectors. In Germany, the Tungsten market was buoyed by strategic advancements, including the Saxon Mining Authority’s approval of a new mine in the Ore Mountains, enhancing domestic production capabilities. However, energy cost volatility continued to challenge the manufacturing sector, impacting production costs. Demand remained robust, driven by significant growth in the defense and automotive sectors. Collaborative ventures, such as the production of advanced tank ammunition and increased car production, underpinned consumption. The aerospace sector further bolstered demand with major contracts like Airbus Helicopters’ supply agreement for 82 H145M helicopters. Despite supply chain pressures and subdued confidence in the manufacturing sector, imports from China and other key sources ensured market stability. The steady demand across defense, aerospace, and electronics sectors reinforced Germany’s position as a key player in the European Tungsten market. By the end of the quarter, Tungsten Bar (99.9%) prices in Germany stood at USD 75,872/MT, marking consistent market performance despite broader economic and geopolitical challenges.
APAC
In the fourth quarter of 2024, the tungsten market in the APAC region experienced a 1.0% decline in prices, reflecting subdued demand and a balanced supply environment. Suppliers across the region demonstrated strategic inventory management to navigate fluctuating market conditions. Despite technological advancements and operational efficiencies in tungsten production, oversupply in China, coupled with cautious procurement strategies from downstream sectors, maintained pressure on prices. In Vietnam, the tungsten market exhibited mixed performance throughout the quarter. The start of the quarter saw a recovery in the manufacturing sector, driven by increased production and new orders. However, challenges such as lingering supply chain disruptions and limited post-production inventories tempered growth. Demand from the automotive sector initially surged, supported by government incentives, but declined sharply toward the end of the quarter, with vehicle sales dropping significantly. This contraction, along with a slowing manufacturing sector and reduced foreign orders, weakened tungsten consumption. Imports became increasingly vital to meet demand, but fluctuating supplies and high raw material costs further complicated the market. By the end of the quarter, the price of Tungsten Bar W-4 (99.9%) CFR Hai Phong stood at USD 45,120/MT, highlighting persistent market challenges and a cautious outlook for the near term.
For the Quarter Ending September 2024
North America
The North American tungsten market demonstrated notable volatility during the third quarter, primarily influenced by shifting trade dynamics and varying industrial demand. The market's trajectory was particularly shaped by regulatory decisions and international trade relationships, especially with major suppliers like China.
The U.S. tungsten market experienced contrasting trends between the first and second halves of the quarter, with a modest 1% increase observed. The period was marked by significant supply & demand fluctuations, influenced by multiple factors. Trade policy played a crucial role, with the administration's tariff adjustments and regulatory changes affecting market dynamics.
Key sectors demonstrated mixed performance, with the automotive industry showing particular volatility. While hybrid and electric vehicle segments initially provided some market support, overall automotive sector challenges persisted. Trade tensions with China and subsequent tariff implementations by US trade representative further complicated market conditions, affecting both pricing and supply chain strategies. As the quarter came to a close, the price for Arsenic Metal in the USA was quoted at USD 86673/MT CFR San Diego, mirroring the broader trend of escalating prices across the region.
APAC
In the third quarter of 2024, Asia's tungsten market exhibited a complex dynamic, initiating with moderate supply levels that soon encountered difficulties. Mid-quarter, the market experienced a transient uplift, with prices rising by 1.5%. However, this growth was overshadowed by the operational inefficiencies of smelters, which ran below anticipated capacity due to inventory shortages and escalated procurement expenses, compelling a focus on fulfilling long-term contracts.
Despite these challenges, the market in China managed a slight 1% growth from the first to the second half of the quarter. This trend signaled intense pricing pressures throughout the supply chain. Concurrently, employment within the industry saw a reduction, and the accumulation of work backlogs lessened, mirroring the wider economic difficulties faced by the region. These factors collectively painted a picture of a Tungsten market caught in the throes of volatility, with resilience being tested by a confluence of market forces and external economic pressures. As the quarter came to a close, the price for Tungsten in China was quoted at USD 45218/MT FOB Shanghai, mirroring the broader trend of escalating prices across the region.
Europe
The European tungsten market demonstrated notable volatility throughout the third quarter of 2024, with supply chains showing resilience despite ongoing global shipping challenges. A strategic development emerged as Belgian group Solvay announced plans to supply Europe with rare earth metals from its French facility, marking a significant step towards reducing Chinese dependency for critical materials.
The German tungsten market exhibited a clear divide between the first and second half of the quarter, with a modest 1% increase observed. The quarter began with moderate supply levels, supported by stabilizing global shipping conditions and easing freight rates on major East-West routes. The shipbuilding industry remained a bright spot, with Meyer Werft's strong order book providing stability to demand. However, the quarter concluded with a marked decline in manufacturing activity, characterized by sharp drops in new orders and widespread customer destocking, particularly affecting the automotive sector. Amidst these market dynamics, tungsten prices settled at USD 74,382/MT FD-Berleburg (Germany) by the quarter's end.
