SMM data showed that Chinese APT output was down 2.6% MoM at 11,000 mt in November. Tungsten concentrate market saw tight output, low-priced inventory cutbacks, and holders’ strong willingness to keep prices firm. Therefore, APT smelting costs increased, and its growth rate was faster than demand growth. Under this circumstance, APT prices had difficulty of hiking, leaving APT smelters with more losses. In addition to necessary long-term contract delivery, production and consumption of bulk cargoes shrank significantly. Therefore, APT production started declining to a certain extent.
In December, APT market will still witness rising tungsten concentrate prices and shrinking demand. Therefore, APT smelters will only maintain basic production. It is expected that APT output will keep inching down in December.
