Upstream Miners Nearing Resumption of Production, Raw Material Supply Increases, Multiple Tungsten Companies Lower Long-Term Contract Prices [SMM Commentary]

SMM February 21 News: With the market's increasing expectations that tungsten raw material enterprises will gradually resume production from late February to early March, and some traders selling off old inventory for cash, supply has increased. However, demand has not shown significant improvement, and the market sentiment has been affected by concerns over potential reductions in future tungsten exports. As a result, tungsten prices have declined, with multiple tungsten enterprises, including Jiangxi Tungsten Industry and Zhangyuan Tungsten Industry, lowering their long-term contract prices for the second half of February.

Jiangxi Tungsten Industry and Zhangyuan Tungsten Industry Lower Long-Term Contract Prices

Jiangxi Tungsten Industry Holding Group Co., Ltd.'s guidance price for national standard Grade 1 black tungsten concentrate for the second half of February 2025 is 143,500 yuan/standard mt, down from the previous guidance price of 144,500 yuan/standard mt.

Chongyi Zhangyuan Tungsten Co., Ltd.'s long-term contract prices for the second half of February are as follows: 1. 55% black tungsten concentrate: 141,500 yuan/standard mt, down 1,500 yuan/standard mt from the previous price; 2. 55% white tungsten concentrate: 140,500 yuan/standard mt, down 1,500 yuan/standard mt from the previous price; 3. Ammonium paratungstate (national standard Grade 0): 211,000 yuan/mt, down 1,500 yuan/mt from the previous price. Note: The above prices include 13% VAT.

Market Trading Activity Remains Low; Black Tungsten Concentrate Has Fallen Over 1% Since February 13

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According to SMM quotations, on February 21, the price of black tungsten concentrate (≥65%) was 143,000-144,000 yuan/standard mt, with an average price of 143,500 yuan/standard mt, down 500 yuan/standard mt from the previous trading day, a decrease of 0.35%. This average price of 143,500 yuan/standard mt represents a decline of 1,500 yuan/standard mt, or 1.03%, compared to the previous high average price of 145,000 yuan/standard mt on February 13.

Reviewing the tungsten price trend, it can be observed that this week, tungsten prices have shown a slight downward trend overall. Market inquiries have been relatively quiet, trading activity remains low, and trading volume has not seen significant growth.

Outlook

Currently, the tungsten market sentiment is being influenced by the demand side: a reduction in tungsten product export volumes, and the supply side: as month-end approaches, upstream mining enterprises are expected to resume production, and some traders are eager to lower prices for sales. These factors have led to a slight decline in raw material prices in the tungsten market. Meanwhile, downstream demand has yet to show significant growth, and the market remains in a wait-and-see mode. With the supply-demand relationship of increased supply and reduced demand not undergoing significant changes, the tungsten market is expected to continue fluctuating downward.