Tungsten Market Update

Tungsten prices have increased significantly in 2005 from a level of US$65-95/MTU in 2004 to US$290 in mid-2005. Prices are generally quoted per metric ton unit ("MTU" - one hundredth of a metric ton of 1,000 kilograms) of contained tungsten trioxide (WO3).
Tungsten is not traded on an exchange, such as the London Metal Exchange (LME), and, therefore, no terminal or futures market exists for tungsten products, where producers, consumers and traders can fix an official or settlement price. The only price information that is available globally is published by the London Metal Bulletin and is based on information from producers, consumers and traders.
Current trends that have important implications for tungsten prices include China's recent growth rate. China is now the largest consumer of tungsten in the world. Also, subsidies for state owned tungsten mines in China have been reduced and a number of these mines have closed. Ore reserves of operating mines are being depleted. Current world mine supply of tungsten is believed to be less than usage, with the difference coming from stockpiles. The formerly large Russian stockpile is now depleted or close to depletion. In addition, global demand for tungsten has recently increased with continuing growth of the principal economies.In 2005, market prices started to move upwards. The key quotation, for ammonium paratungstate in Europe, ranged between US$65-95 in 2004, and increased dramatically to the range of US$270-295 by June 2005.
Source courtesy of Tungsten Metals