Tungsten carbide scrap prices remained steady throughout most of September, with low market activity and a stagnant broader commodities complex. Demand was sluggish, offset by tight supply, while macroeconomic uncertainties left participants in the tungsten carbide scrap market uncertain about future price trends.
As of 30 September, monthly prices for scrap tungsten carbide inserts held at $10-10.50/lb, unchanged since 29 August. Similarly, carbide round scrap prices remained at $10.25-10.75/lb over the same period. Spot inquiries for mixed loads were largely at $10.50/lb, while unprompted bids reflected tiered pricing, generally around $10/lb for inserts and $10.50/lb for rounds.
Market participants pointed to stable bids for carbide scrap in September, with supply-side concerns supporting prices since August. However, few spot transactions were reported by suppliers as the third quarter came to a close. Some traders suggested that limited immediate availability contributed to the slowdown in spot trades, while others cited a general uncertainty regarding the near-term outlook for the broader tungsten market.
In China, export prices for ammonium paratungstate (APT) inched up to $325-340/metric tonne unit (mtu) by the end of September, compared to $325-335/mtu at the start of the month, following a single price increase on 17 September. Meanwhile, export prices for carbide powder (3-4 micron) remained steady at $43-44/kg ($19.50-19.96/lb) throughout the month. Intermediate pricing for tungsten products stayed largely flat during the third quarter of 2024, which also contributed to minimal price fluctuations in the US carbide scrap market over the same period.
Although Chinese buyers imported higher volumes of feedstock in the first half of the year, export volumes of tungsten products, especially APT, declined over the same timeframe. The looming threat of 25% tariffs on Chinese minerals by the US Trade Representative weighed on market sentiment in September, limiting downward pressure on tungsten prices. However, further price increases have been restrained by a weak demand outlook for the remainder of the year.
US industrial production in machine shops for turned products, screws, nuts, and bolts fell for the twelfth consecutive month in August, registering a reading of 93.54, down from 101.23 in the same period the previous year. This marked the fifth straight decline from July's reading of 94.48. The index tracks the real output of machine shops involved in precision metal and plastic machining or manufacturing bolts, nuts, and screws. A sharp drop in the index typically signals a decline in scrap generation, which could impact supply several months later.
