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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China, EU launch talks ahead of EV provisional duties
China, EU launch talks ahead of EV provisional duties
Beijing, 28 June (Argus) — China and the EU have launched talks on the EU's anti-subsidy investigation on battery electric vehicle (EV) imports from China ahead of the planned start of provisional duties for early next month, according to China's ministry of commerce. The European Commission on 12 June announced provisional duties on Chinese battery EV manufacturers, setting an additional rate of 17.4pc for BYD, 20pc for Geely and 38.1pc for SAIC, as well as 21pc for other producers that co-operated in the investigation, from the current 10pc duty. "Minister Wang Wentao held video talks with the European Commission's executive vice-president and trade commissioner Dombrovskis on 22 June," said the ministry's spokesperson He Yadong. "The working teams of the two sides have maintained close communication and stepped up consultations." When asked for comments regarding industry discussions on whether the two sides are likely to set minimum import prices and volumes to replace the duties, similar to the approach taken in the EU-China photovoltaic dispute in 2013, He Yadong did not answer directly, saying "We hope that the EU will push for positive progress in the consultation as soon as possible and reach a solution acceptable to both sides so as to avoid the adverse impact of escalating trade frictions on China's and EU's economic and trade relations." The European Commission said on 12 June that if talks with the Chinese government do not lead to an "effective" solution, the provisional countervailing duties will start from 4 July and definitive duties would be published before November, it said. China's main economic planning agency the NDRC on 17 June said the EU's punitive duties on battery EV imports from China will increase the EU's dependence on fossil energy . But many industry participants remain hopeful that the duties can be negotiated down via the talks before the duties are imposed. The EU, China's largest trade partner since 2020, has introduced more protectionist moves against China in recent years, especially in the EV and battery raw materials sectors, including anti-subsidy duties on EVs and the Critical Raw Materials Act. China's exports of battery EVs to Europe fell by 15pc in January-May from a year earlier and by 22pc in May, according to data from the China Passenger Car Association (CPCA). Exports to main European destinations during January-May consisted of 115,318 units to Belgium and 67,956 units to UK. Chinese EV producers complained that the EU was requiring them to provide far more information than they needed for an anti-subsidy investigation. "Chinese EV and battery companies were required to provide information such as their battery components and chemical formulations, EV production costs, EV parts and raw material procurements, sales channels and pricing methods, customer information in Europe, and their supply chains," He Yadong said. China has taken up more than 60pc of the world's EV sales, driven by its decarbonisation targets and ambition of making up for its slower development of internal combustion engine vehicles. But it is facing more geopolitical restrictions from the US, EU and some other western countries. The US has raised its duty on China's EVs to 100pc from 25pc. Canada will also launch a consultation on 2 July for a potential punitive duty on China's EVs. Turkey has also imposed a 40pc duty on all Chinese vehicle imports. China exported 519,000 new energy vehicles during January-May, up by 14pc from a year earlier, according to data from the China Association of Automobile Manufacturers (CAAM). But exports in May fell by 9pc from a year earlier and by 13pc from the previous month to 99,000. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Bolivia coup attempt exposes instability
Bolivia coup attempt exposes instability
Montevideo, 27 June (Argus) — Bolivia's government quickly thwarted an attempted coup on Wednesday, but the military action deepened the country's economic and political problems. President Luis Arce fired the commander of the joint chiefs of staff, army general Juan Jose Zuniga, who was subsequently arrested. The government claimed that an "anti-democratic network" in the armed forces involved around 10,000 troops. While the coup failed, it added to the instability that has gripped the country as it transitions away from being a major natural gas supplier and tries to monetize its vast lithium resources. The administration attempted to calm fears as long lines remained at banks and retail fuel stations the day after the coup. The hydrocarbons and energy ministry released a statement on 27 June that everything was normal with fuel supply around the country. It called on the population to refrain from panic buying. State-owned oil and natural gas company YPFB reiterated the message. The company had already been dealing with a strike by truck drivers and road blockades around the country that slowed distribution of gasoline and diesel, as well as 10kg LPG cylinders for household use. Bolivia has seen a sharp decline in natural gas and oil production, with the country now importing close to 80pc of diesel. Crude production was 21,780 b/d in March, down from 50,170 b/d in 2025. Natural gas production is now hovering around 40mn m³/d, down from a peak of 56mn m³/d in 2006, according to YPFB. Gas exported through pipelines to neighboring Argentina and Brazil has been an economic mainstay, but that is changing. Bolivia will stop exports to Argentina in September, and it has a deal to export up to 20mn m³/d to Brazil. Gas exports to Argentina earned Bolivia $223 mn in the first four months of 2023, falling to $164mn this year; it exported $423.5mn to Brazil between this January-April, down from $518mn in 2023. The government wants to replace gas revenues with those from lithium. It has signed direct lithium extraction deals with Chinese and Russian companies, but production is not expected for several years. Bolivia has an estimated 23mn short tons of lithium resources, the largest in the world, according to the US Geological Survey. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Bolivia's Arce faces coup attempt
Bolivia's Arce faces coup attempt
Montevideo, 26 June (Argus) — Bolivia's president fired the commander of the country's army, warning that a coup was in the making after military forces thronged the capital amid infighting in his political party. President Luis Arce sacked the commander of the joint chiefs of staff, army general Juan Jose Zuniga, as tanks were weaving through the streets around the presidential office building and congress in La Paz. The president, flanked by his cabinet ministers, called for the country to unite. "We need the Bolivian people to organize and mobilize against the coup and in favor of democracy," the president said. Brazil denounced the attempted coup and called for support for Arce. The potential coup came amid rising tensions between Arce and former president Evo Morales for control of the ruling MAS party ahead of the 2025 general elections. Morales was president from 2006-2019, when he resigned after winning a new term in controversial elections. An interim government ran the country until Arce's 2020 election. He and Morales have been feuding since then, with the situation spilling over in recent weeks. The government blames Morales for recent roadblocks and a strike by truck drivers that the administration claims is costing the country a daily $50mn in losses. State-owned oil and natural gas company YPFB has been one of the hardest hit by the strike, unable to deliver gasoline and 10kg LPG cylinders to service stations. Arce also accuses Morales of mishandling the country's natural gas industry and inflating reserve figures. Natural gas production has been falling, going from a high of 56mn m³/d in 2006 to around 40mn m³/d in April, according to YPFB. Bolivia has considered reversing the flow of some of its oil and natural gas pipelineS to import rather than export as its production has declined, and plans to tap its extensive lithium reserves have lagged. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Q&A: Integrated lithium production crucial for Britain
Q&A: Integrated lithium production crucial for Britain
London, 26 June (Argus) — A number of British companies have sought to start production of critical minerals as geopolitical tensions and protectionism have started to roll back global supply chains. Argus spoke with Imerys British Lithium vice president for lithium projects Alan Parte about the need for lithium mining and refining in Britain and Europe. Edited highlights follow: How does Imerys position itself competitively compared with other integrated lithium producers, particularly those in Australia and China? Currently, no battery-grade lithium is produced in Europe, and all countries including the UK and France are competing with China for supplies from Australia and South America. Projects such as Imerys British Lithium in Cornwall and Emili in France will play a key role in the energy transition as well as UK and European independence on critical minerals. Our ambition and standards in terms of environmental and social impacts are much higher than what can be found overseas. Our water consumption will be far lower, for example, and we will be able to lower the carbon footprint of lithium by up to half, owing to a reduction in distance travelled by raw materials and a greater use of renewable energy. What are some of the key technological innovations you are exploring or implementing to improve the efficiency and sustainability of lithium extraction and processing? For our Imerys British Lithium project in Cornwall, we plan to co-locate our quarry, beneficiation and refinery plants, which we believe is a world first. This substantially reduces the carbon footprint as we will reduce the distance the raw materials need to travel during the stages of processing. Cornwall and Imerys are both well supplied with renewable energy and we will use as much of this as possible, always looking to increase over time. We also predict we can recycle our water and only use water drawn from Imerys' own reserves, not the local supply. Regarding our Emili project in France, we are looking at 90pc water recycling solutions for concentration and conversion phases, with the choice to use waste water from a nearby water treatment plant at the conversion plant. For both projects, we plan to use rail transportation to reduce the impact on local roads. In the UK, Imerys has an extensive network of private haulage roads, which will keep plant traffic away from small local villages. Imerys in Cornwall has its own private railway sidings from existing kaolin (soft clay) operations and this infrastructure can be utilised for lithium transportation. In France, mica concentrate would be brought in via pipelines before being loaded on to trains. Both projects will also aim to use an electric mining fleet. How do lithium resources in Cornwall and the surrounding area compare with those in other lithium-producing regions? IBL has a lithium resource of at least 160mn t, which will allow us to produce enough lithium carbonate for half a million electric vehicle (EV) batteries a year for more than 30 years. Emili will produce about 34,000 t/yr of lithium hydroxide, enough to produce 700,000 EV batteries a year. The two projects together will provide about 10pc of Europe's lithium needs. How are you planning to integrate your production into the broader UK and European supply chains for EVs and renewable energy storage solutions? We will direct our production to the UK and European supply chain. Several gigafactories are in progress or under construction in France, in the UK and other European countries. Several cathode active materials projects have also been announced in Europe. Do you have any expectations for a new government in terms of support for a localised lithium supply chain and how can the UK improve development/operating conditions for UK lithium producers? The UK government has been very supportive and we expect that to continue — in line with the Critical Minerals Strategy. This is the same situation in France — our Emili project aligns with the EU's Critical Raw Materials Act — pushing for at least 10pc of critical materials sourced locally and 40pc transformed locally. In the UK, IBL has benefited from about £5mn of government grants for research and development. This has played a huge role in getting us to this point — where we have a fully functioning pilot plant — producing battery-grade lithium carbonate for two years now. Do you plan on producing any other by-products and what would they be? In the UK, we are looking at the potential of various by-products including tin, and in France potentially feldspar or feldspathic sand. By Thomas Kavanagh & Chris Welch Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
