Tungsten prices are at highs not seen for some time. This short update will help you to understand the fundamental reasons behind these high prices and give you an insight into the near to medium term outlook for the tungsten market.
The insights provided in this 10 minute video are taken from the new edition of Argus Tungsten Analytics service, presented by Mark Seddon, Principal Consultant.
The video update explores:
• Tungsten prices are at 6-year highs, principally affected by near-term supply issues in China
• Demand for tungsten is generally muted, especially in Europe, but the defence sector is driving demand given the current geo-political issues in eastern Europe and the Middle East
• The medium-term supply picture is likely to be boosted by new projects coming on-stream in 2H 2024 and 2025
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Cop: Guterres warns of exploitation in minerals race
Cop: Guterres warns of exploitation in minerals race
London, 13 November (Argus) — Demand for critical minerals vital to the electric vehicle and renewable energy sectors should be met without causing a "stampede of greed" that exploits local communities and harms those living in poverty, UN secretary-general Antonio Guterres has said. "We are here to respond to a key challenge — turning the energy transition towards justice," Guterres told the UN Cop 29 climate summit in Baku, Azerbaijan. Guterres warned that as the energy transition accelerates, it could present more risks than opportunities for many developing countries rich in metals such as copper or lithium unless managed with justice and equity. "For developing countries rich in resources, [the energy transition] is a huge opportunity to generate prosperity, eliminate poverty and drive sustainable development. But too often this is not the case," he said. "Too often we see the mistakes of the past repeated in a stampede of greed that crushes the poor," Guterres added. "We see developing countries ground down to the bottom of value chains, as others grow wealthy on their resources." In response to concerns in developing countries rich in battery minerals, the UN in April established the Panel on Critical Energy Transition Minerals. The panel of governments, international organisations, industry and civil society developed "voluntary principles" for managing value chains for critical energy transition minerals. The panel's report outlines seven voluntary guiding principles covering environmental and human rights, responsible investment and finance, transparency and anti-corruption measures, and international co-operation. It also identifies five "actionable recommendations", including establishing an advisory group to accelerate benefit-sharing and economic diversification, developing a mineral traceability framework and creating a fund to address mine closures and other mining legacies. The UN code has no enforcement mechanisms, and so implementation depends on the participation of industry, governments and civil society. By Cristina Belda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Echion, CBMM open Nb anode material facility
Echion, CBMM open Nb anode material facility
London, 13 November (Argus) — UK-based niobium battery materials company Echion and the world's largest niobium producer CBMM have opened a niobium anode production facility at CBMM's industrial complex in Araxa, Brazil, this week. The facility will produce up to 2,000 t/yr of Echion's proprietary XNO active anode material, equivalent to 1GWh of lithium-ion cells. The niobium-based anode material is designed to enable safer fast-charging, reducing the risk of overheating or battery damage. The material can also maintain high-energy density at extreme temperatures and high power across more than 10,000 charging cycles, Echion said. Echion and CBMM aim to supply the XNO anode material to electrified heavy-duty industry, commercial and mass-transport customers, as these sectors could benefit the most from safe ultra-fast charging and long-life batteries. Echion already has some downstream customers for its XNO products. Leclanche, a Swiss energy storage technology supplier, announced its XN50 lithium-ion battery cell that uses XNO anode material in September. Leclanche is expected to replace its existing lithium titanium oxide offering with this new range of batteries. Meanwhile, CBMM began testing niobium-titanium-oxide anode materials in short-range lithium-ion batteries earlier this year as part of a project to produce electric buses with Japan's Toshiba and Germany's Volkswagen. CBMM is the world's largest producer of ferro-niobium used to produce high-strength steels, but has expanded into niobium-based battery materials in recent years. The company aims to have 30pc of its revenues come from non-steel-based products by 2030. By Sian Morris Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Five factors to watch for in the tungsten market
Five factors to watch for in the tungsten market
Barcelona, 13 November (Argus) — The tungsten market is evolving quickly and Argus has identified five key developments to watch out for in the market, following the International Tungsten Industry Association (ITIA) conference in Barcelona last week. Increasing demand for tungsten concentrate Tungsten scrap availability is declining, which has increased global consumption of tungsten concentrate. China in particular has a growing appetite for tungsten, and tungsten concentrate prices in the country are rising significantly. Between January and August this year, China's tungsten concentrate imports rose by 95pc, driven by strong domestic demand for raw material feedstock which has faced tight supply for the past two years. Furthermore, production costs in the Chinese tungsten market have risen rapidly. According to a panellist, only a few new projects are expected to be operational this year. Argus' European tungsten concentrate price stood at $260-270/kg on 13 November, up by 8pc on the year. Mergers and acquisitions activity intensifies The industry is experiencing an uptick in mergers and acquisitions, with more expected in the near term. This aligns with broader trends in the global mining sector. Market sources indicated that they expect one or two acquisitions annually in the tungsten sector, with increased activity projected by next year. Over the next decade, industry consolidation is expected, especially in the US where the market remains fragmented. "Companies have the option to grow organically or through acquiring smaller firms, for instance, in the tooling market," a supplier stated. This consolidation trend is already under way in China, leading to more integrated tungsten supply chains. Due diligence requirements evolve There is growing pressure for improved due diligence across the supply chain, although challenges remain. Some downstream consumers are adopting risk-avoidance strategies rather than risk mitigation, asking their entire supply chains to stop sourcing materials from "suspended countries." Disputes regarding due diligence mechanisms amid conflict in the Democratic Republic of Congo add complexity in this area. Additionally, with the US increasing tariffs on Chinese tungsten products, Chinese smelters may shift from the Responsible Minerals Assurance Process (RMAP) to their own guidelines, recently introduced in 2023 by the China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters (CCCMC). This shift could enhance their negotiating leverage and may require cross-recognition between the RMAP and CCCMC, potentially benefiting downstream companies. Diversification of supply chains Concerns about a trade war between the US and China and over-reliance on one supplier are driving efforts for supply chain diversification in western countries. The US already charges a 25pc duty on imported Chinese tungsten products. This could escalate under president-elect Donald Trump, who proposed tariffs of up to 60pc on imports from China during his campaign. Notably, China accounts for over 80pc of global tungsten production. Initiatives to diversify sources are under way, such as the Sangdong mine in South Korea, which is expected on line next year. In the US, the Department of Defense is providing funding opportunities for the development of domestic mining. At the moment, Guardian Metals in Nevada is the only project that could come into production in the US in the next three years. Defence, energy and mining could partially offset auto demand decline The tungsten industry is exploring new sector applications to address demand shortfalls in the automotive industry. Electric vehicles utilise less metal than gasoline and diesel vehicles. But there is increasing demand from the mining, oil and gas sectors, as well as military applications and aircraft. Market sources have high expectations for tungsten's use in nuclear fusion engines, which are expected to become a reality potentially within three years. In China, demand for tungsten wire in the solar industry has grown owing to the country's decarbonisation targets, although overcapacity in solar glass could affect this demand. And there have been developments in semiconductors, with chipmakers like Nvidia and TSMC using tungsten wires for chip and panel production. By Cristina Belda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
CNGR’s NNI produces high-grade Ni matte in Indonesia
CNGR’s NNI produces high-grade Ni matte in Indonesia
Singapore, 13 November (Argus) — Nadesico Nickel Industry (NNI), the Indonesian subsidiary of major Chinese lithium-ion battery cathode active material (CAM) precursor manufacturer CNGR, produced its first batch of high-grade nickel matte (HGNM) on 6 November. NNI has the capacity to produce nickel pig iron (NPI), low-grade nickel matte (LGNM) or HGNM, depending on market conditions and profitability. The company is ramping up six production lines in north Morowali, Central Sulawesi, while simultaneously constructing another two lines. LGNM production capacity stands at around 80,000 t/yr in nickel metal equivalent, while the full ramp-up of all production lines could yield up to 40,000t of nickel metal equivalent in HGNM, according to CNGR. But market participants anticipate that the NNI project will primarily focus on NPI production, with each production line having a capacity of around 12,000 t/yr in nickel metal equivalent in NPI. HGNM is used in the production of nickel sulphate, a feedstock for lithium-nickel-cobalt-manganese oxide CAM battery or nickel production. CNGR operates another HGNM project in Indonesia with a production capacity of 60,000 t/yr in nickel metal equivalent, along with two other projects producing LGNM, with a combined nameplate capacity of 55,000 t/yr. CNGR, from its Indonesian operations, produced approximately 60,000t in nickel metal equivalent from January to September. This figure excludes output from its first and only class I nickel Indonesian refinery, ZWDX, which commenced production in June 2023 and has a nameplate capacity of 50,000 t/yr. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
