Prices are slipping on increasing supply

Tungsten prices are sliding slightly this month to an average
$11.88/lb from improved supply, after averaging $12.49 in the domestic
market for the past 10 months. For the 10 months before that, when
supply was very tight, tungsten prices averaged $13.40/lb.

This month's slippage is being pinned to recent reduced metalworking
activity by the automotive, appliance and machinery industries.

Looking ahead, tungsten prices may slip further since new supplies of
tungsten concentrate are entering the world market, as expected, from
new production facilities in the U.S., Peru, Australia, Canada, China,
Spain, Thailand, Uzbekistan and Vietnam.

A North American supply executive recently told industry publication
Metal Bulletin that, "We're seeing a lot of new capacity coming
online, and there's just an awful lot of stuff out there today. The
spot market will have no choice but to adjust to more realistic supply
levels."