ZIGONG INTERNATIONAL MARKETING 1-440-350-7223
This space will be used for market commentary, presentation and article access and general information, all of which will be updated from time to time. As the site is new, we offer only the Powder Point presentation listed below
and a brief commentary on the market today. It is typical of what will be available here in the future.
July 28, 2005 - Market Opinion
We have just passed through a period of unreasonably high tungsten prices. While the price increase had its roots in basic supply and demand, greed and speculation soon took over and lifted the APT published quotes to over $300 per MTU. As a result, Western world concentrate out put has increased, investment by the West in tungsten chemical plants and mines has increased and the Chinese miners will now begin loose market share. The market drops today with little to stop its fall. Most consumers have inventory at some point in their businesses and have no need to buy for several months. Speculative inventories remain in place and face steeper losses day by day. The Chinese tungsten price no longer sets the world mark as scrap become widely available in the West and the DLA prepares to release significant amounts of stockpile concentrates. Some believe the market will rebound when consumers start buying again in the third or fourth quarter. Keep in mind; consumers now have new Western sources to buy from as alternatives to China material. Add to this a slowing of the Chinese economy (a good thing for China) and the need to export tungsten will again become very important. And Chinese mines will not be able to sell all they can produce. Click here to download PowerPoint Presentation.
When prompted, choose "Open".
Don't have PowerPoint? Download the FREE viewer here.
We have just passed through a period of unreasonably high tungsten prices. While the price increase had its roots in basic supply and demand, greed and speculation soon took over and lifted the APT published quotes to over $300 per MTU. As a result, Western world concentrate out put has increased, investment by the West in tungsten chemical plants and mines has increased and the Chinese miners will now begin loose market share. The market drops today with little to stop its fall. Most consumers have inventory at some point in their businesses and have no need to buy for several months. Speculative inventories remain in place and face steeper losses day by day. The Chinese tungsten price no longer sets the world mark as scrap become widely available in the West and the DLA prepares to release significant amounts of stockpile concentrates. Some believe the market will rebound when consumers start buying again in the third or fourth quarter. Keep in mind; consumers now have new Western sources to buy from as alternatives to China material. Add to this a slowing of the Chinese economy (a good thing for China) and the need to export tungsten will again become very important. And Chinese mines will not be able to sell all they can produce. Click here to download PowerPoint Presentation.
When prompted, choose "Open".
Don't have PowerPoint? Download the FREE viewer here.
