Diversified metals trading firm and producer China Minmetals has purchased tungsten bar stocks from the bankrupt Fanya metal exchange in a recent auction.
The price for 431.95t of tungsten bar stocks was eventually settled at 65.96mn yuan ($9.39mn), equivalent to Yn152,702/t with a 13pc value-added tax unpaid.
The auction, held by China's Kunming intermediate court, started at 10:00 China time (02:00 GMT) on 22 November and ended at 10:00 China time on 23 November, during when the exchange's bismuth stocks were also being auctioned.
The purchase is expected to have limited impact on the spot market, given its small size.
The Kunming intermediate court held an auction for 28,336t of ammonium paratungstate stocks from Fanya in September. Major tungsten producer China Molybdenum bought the stocks by outbidding China Minmetals.
Chinese tungsten prices are expected to rebound in the near term as suppliers scale back sales after consumers started replenishing stocks last week. Stockpiling demand from the cemented carbide, super alloy and special steel industries is expected to rise before China's lunar new year holiday in January.