Xiamen Tungsten lifts APT bid price

State-owned Xiamen Tungsten has raised its purchase price for intermediate product ammonium paratungstate (APT) in response to higher spot prices.

The firm's bid price has risen to 177,000 yuan/t for delivery in early June, a rise of Yn2,000/t from late May.

Xiamen Tungsten's APT bid price is lower than the spot market where supply has tightened sharply following production closures in Ganzhou. China's environmental inspection teams visited Ganzhou in May and forced all smelters to idle production for technical upgrades. Many smelters have not resumed production this month as anticipated because inspection teams have returned to the region for more checks and spot supply remains limited.

Prices rose to an eight-month high of Yn178,000-181,000/t on 17 May because of the shortage. But tight supply has been balanced by weak demand from the main consuming sectors, cemented carbide and specialty steel producers, leaving prices unchanged since then.

Argus assessed APT flat at Yn178,000-181,000/t today, but concentrate prices moved up by Yn500/t from 31 May to Yn110,000-112,000/t today as producers responded to the sustained rise in APT prices.

Xiamen Tungsten operates an integrated supply chain from primary mining and smelting to processing and recycling. It can produce 22,000 t/yr of APT along with 15,700 t/yr of tungsten powder and 5,500 t/yr of cemented carbide. It also outsources APT to feed its powder production.