China takes steps to bring order to tungsten market

China is taking steps to bring some order to its tungsten industry.

The country is reported to have halted mining in order to crack down on smuggling and to prevent prices from falling.

In particular, a Chinese metals agency is reported to have halted production at major mines in several provinces in order to allow overdue mine repairs to go ahead.

Tungsten prices have fallen to around $78 per tonne from a high of $95 a year ago. A Reuters report from Hong Kong suggests that because China is the world’s largest supplier of the mineral, it could influence the price.

The report says the production cut will give authorities time to crack down on smuggling. Several thousand tonnes of tungsten are smuggled out of China each year at below official prices. The price difference is reported to be about US$20 per tonne.