Tungsten miners unwilling to sell

BEIJING (Metal-Pages) 29-Jun-10.  Tungsten miners are unwilling to sell tungsten concentrate, as most mines in Jiangxi and Hunan provinces have stopped mining due to the heavy rain.

The prices for 65% grade wolframite have remained holding at Rmb83,000-85,000/tonne, without evident improvement compared with the prices seen late last week, but there is a lack of supply from miners in the spot market.

According to market participants, the supply of tungsten concentrate is even tighter since most mining in Jiangxi and Hunan has been hindered by the heavy rain and the floods.

“Three tungsten mines of Jiangxi Tungsten Group have halted production since the heavy rain and the flooding has prevented miners going to the mines,” said a Jiangxi based smelter. The three mines are Tieshanlong Tungsten Mine, Piaotang Tungsten Mine and Dajishan Tungsten Mine, which are the largest production base for tungsten concentrate in China.

A Miner in Hunan claimed that the company will not sell any material at less than Rmb85,000/tonne.

“Many tungsten mines in Hunan province have stopped production due to the heavy rain and the regulations by the government. I think the supplies of tungsten concentrate will remain tight and higher prices will be seen in the coming month of July,” the source noted.

Meanwhile, the prices for 65% grade scheelite have remained quite firm at Rmb82,000-84,000/tonne. Higher prices are expected to be seen in the days to come