Industry-news
China Tungsten Market Declines in February 2025
The main factors contributing to the bearish sentiment in the market were: (1) The export control policy for tungsten-related items introduced on February 4, which led to an extension of the short-term export certification process and an overall slowdown in market exports; (2) After the resumption of work following the Spring Festival, the industry supply slightly increased, but demand remained sluggish, intensifying the pressure on market fundamentals; (3) The decrease in long-term contract quotes by large tungsten enterprises confirmed the weak market condition, which simultaneously exacerbated the bearish sentiment among some traders.
However, the overall decline in tungsten prices was relatively cautious, mainly due to the tight supply of tungsten ore resources and suppliers' strategy of withholding inventory to stabilize the market. Coupled with the instability in the international political and economic environment, market participants generally adopted a cautious approach, with few panic actions observed. The main direction of future market trends will continue to hinge on changes in market supply and demand, with a focus on the actual recovery of effective domestic demand and the challenges posed by international trade risks.
