China's tungsten, molybdenum industries are expected to continue weakness in the second half of 2015 due to the continuous increase in production and lackluster demand from downstream sectors, said the China Nonferrous Metals Industry Association (CNIA).
In the first half of this year, average price of the country's black tungsten concentrates was 80,800 yuan/metric ton (tonne), down 28.2 percent year on year, while that of the APT was 126,700 yuan/tonne, down 26.7 percent year on year. In the same period, the average price of molybdenum concentrates stood at 1,100 yuan/tonne, down 20.9 percent year on year, while that of ferro-molybdenum was 77,000 yuan/tonne, down 19.2 percent year on year.
Since the beginning of the year, prices of the tungsten and molybdenum on the domestic market have continuously fallen. The current prices have already been lower than production costs of majority of prodders. Under such circumstances, profits of the domestic tungsten and molybdenum enterprises tumbled a lot.
Data shows that in the first five months of 2015, the country's tungsten and molybdenum mining and dressing industry saw main business revenue and profits fall 7.96 percent and 64.95 percent year on year, while the tungsten and molybdenum smelting and rolling processing industry saw main business revenue and profits fall 1.21 percent and 21.21 percent year on year, respectively.
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