Key data from July 15 pricing session in London.

Tungsten APT European free market, $ per mtu:

New price Previous price Change to midpoint of range Midpoint % change
220-230 220-230 0 0

Key drivers
The market remains thinly traded as the traditional summer lull encroaches, in a year characterised by falling prices and patchy consumer demand on a spot basis. However, market participants are now beginning to consider the possible consequences of the difficulties faced by the Fanya Metal Exchange, which may include implications for the western market. The feeling is that physical units will not come back to the market very quickly, if at all, but the large volumes in Fanya warehouses still present a worry. On the other hand, the news that China Molybdenum is building up a tungsten reserve could mean any excess material is mopped up.

Key quotes
"[The Fanya situation] could result in higher competition in the APT market in China, as well as the market outside China. Higher competition would result in lower prices. I think that some investors will keep their stock in Fanya, waiting for the price to rebound, but some will look for an opportunity to sell once it is possible in September."
– Producer

"I'm highly concerned about Fanya. It's just not clear [what will happen]. The exchange is saying, 'just move your investment to Fanrong and nothing changes other than your investment is locked in for another two years.' But if people don't want to move over, and they want to liquidate, they have to do it physically. I've no idea who would be on the other side of that deal. Given the volumes people might be holding as investors, who's going to buy it back?"
– Trader

Claire Hack 
chack@metalbulletin.com
Twitter: @clairehack_mb