Argus tungsten market update and outlook – June 2024
Tungsten prices are at highs not seen for some time. This short update will help you to understand the fundamental reasons behind these high prices and give you an insight into the near to medium term outlook for the tungsten market.
The insights provided in this 10 minute video are taken from the new edition of Argus Tungsten Analytics service, presented by Mark Seddon, Principal Consultant.
The video update explores:
• Tungsten prices are at 6-year highs, principally affected by near-term supply issues in China
• Demand for tungsten is generally muted, especially in Europe, but the defence sector is driving demand given the current geo-political issues in eastern Europe and the Middle East
• The medium-term supply picture is likely to be boosted by new projects coming on-stream in 2H 2024 and 2025
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Sydney, 12 December (Argus) — The Australian government has offered support to UK-Australian producer Rio Tinto to operate its 600,000 t/yr Tomago aluminium smelter beyond 2028 through a long-term power purchase agreement. Rio Tinto subsidiary Tomago Aluminium will work with Australia's federal and New South Wales (NSW) governments over coming months on an energy solution to support the 600,000 t/yr smelter from 2028, Australian prime minister Anthony Albanese said today. The deal will include a fixed-price power purchase agreement and a commitment from Tomago Aluminium to invest A$1bn ($670mn) into the plant over 10 years, he added. A long-term power purchasing agreement is in the interest of continued long-term investment into the industrial future of Tomago, Australia's minister of industry and innovation Tim Ayres said at a press conference. But Ayres declined to comment further on the specifics of the deal. Rio Tinto in October warned that it may need to close Tomago at the end of 2028 when its current electricity contract ends because of unsustainable energy costs. It had been looking for a new energy solution since 2022, but was not able to find one, it said at the time. The company began talks with NSW state and federal officials over energy cost support for Tomago in June. It has run the smelter normally over 2025. It produced 426,000t of aluminium on a 100pc basis at Tomago in January-September, down by 2.2pc on the year. Australia's support for Tomago comes one day after Tim Ayres defended the government's industrial policy record. Industrial policy is "a rational, pragmatic response to the acute challenges of this moment," he said at a speech to the Sydney Institute on 11 December. The government's support packages for the Whyalla steelworks , global producer Glencore's Queensland copper operations , and global producer Nyrstar's lead and zinc smelters were informed by its obligation to preserve and strengthen economic conditions for Australian workers, he added. The government may also offer support to another Rio Tinto aluminium smelter. Tasmanian state officials have called on the federal government to back the company's 190,000 t/yr Bell Bay aluminium smelter through low-carbon production subsidies in November. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
China's CATL to raise $1.4bn to fund battery projects
China's CATL to raise $1.4bn to fund battery projects
Beijing, 11 December (Argus) — China's largest battery manufacturer CATL plans to raise up to 10bn yuan ($1.4bn) by issuing five-year bonds, the company said on 10 December. It aims to support project construction and to replenish working capital through the fundraising, said the company. More details, including which projects will be funded, were undisclosed. CATL is the world's largest battery manufacturer, with its power battery installations accounting for 38pc of the global market during January-October, industry data show. It is building several large-sized production projects in China, including the 100 GWh/yr plant in Jining in north China's Shandong province, and a 40 GWh/yr plant in Shandong's Dongying city, as well as a 80 GWh/yr project in Xiamen of Fujian province. The company has also expanded its production outside China. It began constructing a lithium iron phosphate (LFP) battery plant in Spain's Aragon region on 26 November. It also operates a 14 GWh/yr plant in Germany, and is building a 100 GWh/yr plant in Hungary set to start operations in early 2026. A 15 GWh/yr plant in Indonesia is expected to begin production in 2027. CATL's battery installations rose to 210.67GWh in the first three quarters of this year, a year-on-year increase of 33.6pc. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Rio2 moves into copper with $241mn deal for Peru mine
Rio2 moves into copper with $241mn deal for Peru mine
London, 10 December (Argus) — Canadian mining company Rio2 is acquiring a 99.1pc interest in the Condestable underground mine in Peru, expanding the firm's metals portfolio beyond gold. The acquisition will give Rio2 immediate cash flows and exposure to a metal that has traded at record highs on the London Metal Exchange this week. Rio2 will pay $217mn to Peruvian company Southern Peaks Mining in a staged consideration, with the structure including $80mn cash, $65mn in vendor debt, $35mn in equity and a $37mn deferred payment due in 2027-30. Rio2 has lined up a $120mn equity raise to support the transaction, after upsizing on investor demand, it said. Condestable is 90km south of Lima and has a 8,400 t/d plant that produces a clean concentrate with no processing penalties. Output is forecast at 27,000 t/yr of copper equivalent, with average earnings of $110mn at consensus pricing or $145mn at spot, over the next five years. The operation runs on 100pc renewable hydropower. Rio2 projects its pro-forma annual earnings before interest, tax, depreciation and amortisation will reach $330mn once its Fenix gold mine in Chile begins commercial production. Peru is the world's third largest copper producer. The Condestable mine complements Rio2's current Chilean footprint and returns the company to a familiar jurisdiction. It previously built and sold gold mining company Rio Alto Mining in Peru. Rio2 expects the transaction to lead to around 30pc copper revenue exposure in the near term. Closing is subject to customary approvals. By Raghav Jain Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
EU lowers CBAM benchmarks for aluminium
EU lowers CBAM benchmarks for aluminium
London, 10 December (Argus) — The European Commission has lowered the benchmark for primary aluminium imports under the carbon border adjustment mechanism (CBAM), according to a leaked draft of the approved document. The benchmark determines the free allocations of carbon emissions that will be deducted from the CBAM liability of an importer once implementation of the scheme begins in 2026. The benchmark for primary aluminium will now be set at 1.423t of CO2/t of aluminium produced, down from 1.464t in the draft document seen last month. The benchmark for secondary aluminium, which the EU defines as metal which is more than 50pc sourced from scrap metal, will now be set at 0.091t of CO2/t of aluminium produced, down from 0.139t in the draft document. For most aluminium products in the intermediate steps of the value chain, such as bars, wire, plates and sheets, an additional 0.056t will be added to the primary and secondary benchmarks, while products at the end of the value chain such as aluminium containers and aluminium foil will see an additional 0.166t added to the benchmarks. The commission has also set the default values for CBAM calculations within today's leaked documents. The CBAM default values are estimates of embedded carbon emissions that will be used to determine CBAM charges for imported material in the absence of adequate data for that specific material's origin. The risk of losing the ability to use actual emissions data is a real possibility, consultancy firm Redshaw Advisors lead CBAM advisor Dan Maleski said today. The commission has confirmed that if circumvention of CBAM is detected for a producer, all producers within that country could lose the right to use actual emissions data and would need to rely only on default values, Maleski said. The default values vary between countries and product type. Unwrought aluminium from China will have a default value of 3t of Scope 1 CO2 emissions per tonne of aluminium produced, with intermediate products at 4.88t and foil at 5.56t. Aluminium from India will have a default value of 1.87t, with intermediate products at 3.44t and foil at 4.13t. The UAE will also have a default value of 1.87t for unwrought aluminium, but lower values of 2.22t for intermediate products and 2.66t for foil. A phased-in annual mark-up to default values will be introduced over the next three years to compensate for data gaps, at an additional 10pc/yr. By Jethro Wookey Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.