“The Price of Tungsten may Grow Shapely in 2010”, Experts of Tungsten Industry Predicted
“The Price of Tungsten may Grow Shapely in 2010”, Experts of Tungsten Industry Predicted
IMF and many international news agencies predicted that the prices of raw materials, such as cooper, nickel, ferrous, and tungsten will grow shapely.
Several main reasons that caused this situation were given as below:
A report stated that many economists warned people in this couple of weeks that Federal Reserve Board, advocating cheap money policy, is encouraging the global floating assets rush into the emerging market.
“Hot money” refers to one country’s speculative investment that seeking for short-term profits which mainly come from the interest rate differentials.
Some part of “hot money” flow into China because people believe RMB will appreciate and hope to gain profit from it. Other countries blame China for driving down the RMB exchange rate to enhance the competitiveness of the export products. The pressure that requires RMB appreciation is growing heavier. The pressure is coming from the market, political policy from home and abroad. The RMB rate is predicted to appreciate in the next stage.
Many economists believe that in the first quarter of 2010, the government will permit RMB’s further slow appreciation against U.S. dollar.
If the exchange rate of RMB against U.S. dollar is appreciated, it will affect the price of raw materials and push forward the increase of tungsten price.
Besides, as the New Year festival is coming along with the heavy snow in the Northern part of China, the pressure of gas and electricity is much great, thus the price of these energy consumption will go higher. As the exploration of tungsten demands large amount of these energy, the production cost of tungsten will be driven higher and the manufacture volume will relatively go down. The price of tungsten raw material will increase with no doubt.
The experts in tungsten industry encourage people who want to purchase tungsten products need to launch the purchase plan as soon as possible, otherwise in the third quarter of 2010; the price will be much higher than the early quarter of this year.
If you have any interest to tungsten products, please feel free to contact Chinatungsten by email: sales@chinatungsten.com.
If you need any more details of the above news and/or products, please visit Chinatungsten Online, or contact us directly.
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