Strong Wait-and-See Sentiment; the Tungsten Market Awaited Transaction Stabilization [SMM Tungsten Daily Review]

SMM News, March 18

Tungsten market prices were largely stable today with only minor fluctuations, and wait-and-see sentiment remained strong. Trading volume was scarce in segments such as tungsten ore and APT, with transaction prices mostly clustered around online quoted ranges. Downstream products such as powder also saw limited transactions, and transaction prices showed a slight downward drift.

Ore side: Today, 65% black tungsten concentrate held steady at around 1.03 million yuan/standard tonne (65%WO3 basis). Some spot orders for lower-grade ore were transacted at prices equivalent to around 1.01 million yuan/standard tonne (65%WO3 basis) for 65% standard-grade ore. Downstream smelters mainly restocked for rigid demand, while mainstream mines in Jiangxi and Hunan largely maintained stable shipments. Some traders saw increased demand for cash realization, improving willingness to sell, and market circulation improved slightly.

Smelting market: Today, mainstream quotations for ammonium paratungstate (APT) were concentrated around 1.5 million yuan/mt, while some spot orders were transacted at around 1.48-1.5 million yuan/mt, with the market showing a slight downward drift. Powder transactions were scarce. As costs loosened, some suppliers slightly lowered their quotations. Today, SMM tungsten powder closed at 2,380 yuan/kg, down 20 yuan/kg from yesterday, and some cemented carbide products also recorded declines of 10-20 yuan/kg.
Recycled tungsten market: Market sentiment in the recycled tungsten market eased today. As industry inventory was cleared, some traders entered a restocking cycle, improving transactions in the recycled tungsten market, while recycling prices showed signs of stabilizing after declines. Today, SMM recycled tungsten bars closed at 1,290 yuan/kg, unchanged from yesterday. SMM recycled tungsten drill bits closed at 1,255 yuan/kg, largely unchanged from yesterday.

Ferrotungsten: Recently, steel mills maintained strong wait-and-see sentiment toward procurement, and ferrotungsten transactions were relatively small. Some steel mills reported fewer terminal orders, and production of some tungsten-containing special steel grades declined significantly in the near term. China ferrotungsten market showed a pattern of weak supply and weak demand, but under cost pressure, quotations from China ferrotungsten enterprises remained firm. Today, mainstream quotations for 80% ferrotungsten were concentrated at 1.42 million yuan/mt, largely stable from the previous trading day.

Short term, wait-and-see sentiment remained strong in China tungsten market. Affected by downstream resistance to high prices after the previous sharp rise and profit-taking by some market participants, prices saw a slight correction. However, the core logic of rigid supply tightening, low industry chain inventory, and tight supply outside China remained unchanged, leaving limited downside room for any sharp decline. The international market remained strong, and the price spread between domestic and overseas markets widened. In the medium and long term, supported by production control policies and demand from new energy and military industries, tungsten prices still had strong support. In the short term, the market was expected to remain in high-level consolidation while waiting for transactions to stabilize. Continued attention should be paid to long-term contract price guidance for the industry on March 20.