Multiple Tungsten Companies Continue to Lower Long-Term Contract Prices, with a Decline Exceeding 33% in Less Than Two Months — Where Will Tungsten Prices Head Next? [SMM Commentary]

Weak downstream demand continued to weigh on tungsten prices. The average price of wolframite concentrates (≥65%) on May 7 was reported at 700,500 yuan/standard tonne (65%WO3 basis), having pulled back more than 33% from its historical high in less than two months. As multiple tungsten enterprises continued to lower their long-term contract prices for the first half of May, extending the two rounds of reductions in April, how will tungsten prices evolve going forward?

Multiple Tungsten Enterprises Continue to Lower Long-term Contract Prices for the First Half of May

Multiple tungsten enterprises continued to lower their long-term contract prices for the first half of May, with details as follows:

A tungsten industry group in Jiangxi released its long-term contract prices for the first half of May. The guidance price for national standard Grade-1 wolframite concentrates for the first half of May 2026 was 720,000 yuan/standard tonne (65%WO3 basis) (long-term contract), down 190,000 yuan/standard tonne (65%WO3 basis) from the second half of April.

Chongyi Zhangyuan Tungsten's long-term contract procurement prices for the first half of May were: 1 55% wolframite concentrates: 700,000 yuan/standard tonne (65%WO3 basis), down 185,000 yuan/standard tonne (65%WO3 basis) from the previous round; 2 55% scheelite concentrates: 699,000 yuan/standard tonne (65%WO3 basis), down 185,000 yuan/standard tonne (65%WO3 basis) from the previous round; 3 APT (national standard Grade-0): 1.02 million yuan/mt, down 330,000 yuan/mt from the previous round.

Wolframite Concentrates Fell 33.32% in Less Than 2 Months

According to SMM, the price spread between tungsten ore long-term contract prices and spot order transaction prices widened to around 200,000, with mainstream mines primarily making shipments under long-term contracts. Spot orders in the market still faced some selling pressure, with transactions remaining difficult and the center continuously shifting downward. However, considering the limited spot order trading volume and the relatively high proportion of long-term contracts in the market, SMM maintained its May 7 prices unchanged for the time being. According to SMM quotes, the price of wolframite concentrates (≥65%) on that day was 700,000–701,000 yuan/standard tonne (65%WO3 basis), with an average price of 700,500 yuan/standard tonne (65%WO3 basis), flat from the previous trading day.

Along with the downward shift in the tungsten price center, the average price of wolframite concentrates (≥65%) at 700,500 yuan/standard tonne (65%WO3 basis) on May 7, compared with its historical high average price of 1,050,500 yuan/standard tonne (65%WO3 basis) on March 16, showed that in less than 2 months, the average price of wolframite concentrates fell by 350,000 yuan/standard tonne (65%WO3 basis), a decline of 33.32%.

Outlook

As China's mainstream tungsten enterprises continue to lower their new round of long-term contract prices, confidence in the spot market will remain under pressure. Tungsten prices are expected to remain in the doldrums in the short term given the lack of demand support. In the long term, underpinned by the supply rigidity from the continued tightening of China's annual tungsten ore mining quotas, the logic of raw material supply contraction remains unchanged. After tungsten prices pulled back more than 33% in less than two months, the room for further deep declines has been significantly compressed. Going forward, key attention should be paid to the pace of recovery in actual end-user demand from downstream sectors such as cemented carbide, special steel, and PV tungsten wire, as well as the timing of concentrated restocking by enterprises at the low-price segment.