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.
