The prices of long-term contracts surged significantly in the second half of January, with the tungsten market maintaining a sharp upward trend. [SMM Tungsten Daily Review]

SMM January 20 news

Today, the tungsten market continued to be dominated by upward momentum. Some tungsten enterprises in Jiangxi released long-term contract prices for the second half of January. One enterprise in Chongyi raised its long-term contract price for the ore side by 63,000 yuan/mtu for 55% black tungsten concentrate, executing at 523,000 yuan/mtu; APT was raised by 90,000 yuan/mt MoM to 760,000 yuan/mt. Another tungsten enterprise in Jiangxi raised its national standard first-grade black tungsten ore price by 56,000 yuan/mtu MoM to 511,000 yuan/mtu. The significant increase in long-term contract prices for the second half of the month boosted market bullish sentiment. In the afternoon, spot order quotations for domestic ore and APT and other upstream products showed another sharp increase.

Ore side: As of January 20, SMM black tungsten concentrate (65%) closed at 516,000-517,000 yuan/mtu, up 6,000 yuan/mt from the previous trading day. Today, a mine in Hunan sold goods through auction, with the final transaction price for 20% tungsten concentrate reaching 507,600 yuan/mtu. In winter, safety controls and environmental protection-related controls in major tungsten mining areas such as Jiangxi and Hunan have become stricter. Operations and shipments at some mines declined at year-end. Some mines in regions like Henan and Guangdong had already cleared a round of inventory at the beginning of the month and have no immediate shipment plans recently, leading to noticeably tight supply of tungsten ore in phases. Tungsten ore prices are expected to have little room for correction in the short term and remain relatively strong.

Ammonium paratungstate (APT): As of January 20, SMM ammonium paratungstate (≥88.5%) was quoted at 755,000-765,000 yuan/mt, up 5,000 yuan/mt from the previous trading day. Domestic APT operating rates recovered in January, but large plants mostly focused on fulfilling long-term contracts and replenishing previous orders. With rising product values, traders faced significant funding pressure and mostly adopted back-to-back transaction models. Low industry inventory coupled with firm cost-side support pushed prices up. APT enterprises were reluctant to sell, holding back supply, and quotations remained firm. By this afternoon, mainstream quotations in the market had already reached levels above 770,000 yuan/mt. Downstream powder enterprises had moderate orders, mainly restocking for rigid demand. European market: As of last Friday, ammonium paratungstate (APT) CIF Rotterdam port price was $1,000-1,050/mtu, with an average price of $1,025/mtu, up $25/mtu from January 8;

As of January 20: tungsten carbide closed at 1,180-1,200 yuan/kg, up 10 yuan/kg from the previous trading day. Tungsten powder prices were concentrated at 1,220-1,250 yuan/kg, up 10 yuan/kg from the previous trading day. As the raw material market continued to surge sharply, powder enterprises adopted price negotiations on a order-by-order basis. Afternoon market quotations mostly followed the increases in the raw material side. Currently, the powder market faces significant cost pressure, and enterprises are cautious about accepting subsequent orders. The pre-holiday restocking cycle for downstream domestic and international cemented carbide enterprises and end-users has arrived, and market demand resilience is relatively stable.

Ferrotungsten: Strong cost-side support prevailed in the ferrotungsten market, yet steel mills purchased sparingly and trading was only moderate. Today mainstream quotations for 80% ferrotungsten clustered at 730,000 yuan/mt, up 5,000 yuan/mt from the previous session. The European ferrotungsten average stood at $145.5/kg W, up $3.5/kg W from 8 January, while domestic ferrotungsten FOB offers have already broken through $160/kg W, leaving room for further catch-up overseas.

Scrap tungsten: With Chinese New Year approaching, the scrap-tungsten market has seen no sell-off pressure; some recyclers, holding low inventories, remain active buyers. Collection prices mostly track the primary tungsten rally, but as values surge, suppliers prefer quick turnover. Inventories of scrap tungsten in the mid-stream segment have declined from earlier levels. Moreover, with mine-end costs staying high, some smelters have switched to tungsten oxide produced from scrap, giving scrap tungsten a price advantage that has greatly lifted demand. Today SMM scrap tungsten rod closed at 705 yuan/kg, up 10 yuan/kg on the day; other scrap tungsten grades also rose 10-20 yuan/kg.

Short-term, pre-holiday safety and environmental controls have cut mine operating rates, keeping tungsten ore supply tight, while downstream hard-metal and end-user sectors are in a seasonal restocking cycle. The supply-demand mismatch leaves the tungsten imbalance pronounced, so prices should hold up well in the near term. Still, caution is warranted: pre-holiday risk aversion and profit-taking by some suppliers could bring episodic pressure. Medium- and long-term, new global tungsten capacity is limited; geopolitics is driving strategic focus on critical minerals, intensifying competition for tungsten resources and raising supply-chain security concerns, reinforcing a tight-balance structure. The supply-demand gap will keep widening, supporting prices to hover at highs with the price center gradually rising, while the industry shifts toward resource consolidation and upgraded deep-processing technology.