Several Tungsten Companies Continue to Slightly Lower Long-Term Contract Prices When Will the Stalemate in the Tungsten Market Be Broken? [SMM Commentary]

SMM March 21 News: At the beginning of the week, some downstream demand orders were released, and market inquiries increased. Although the supply of circulating goods was tight, the overall trading volume remained stagnant, and tungsten prices continued to stabilize. Jiangxi Tungsten Industry and Zhangyuan Tungsten Industry continued to lower their long-term contract quotes in the second half of March. Notably, Jiangxi Tungsten Industry's long-term contract quote for the second half of March was only 500 yuan/mt lower than that of the first half of March. The reduction in Zhangyuan Tungsten Industry's 55% black tungsten concentrate and 55% white tungsten concentrate for the second half of March also narrowed. This indicates that the price fluctuations in the entire market are very limited. Currently, the tungsten market is showing a stable trend with a weak sentiment as most market participants remain cautious and watchful.

Jiangxi Tungsten Industry and Zhangyuan Tungsten Industry continue to slightly reduce long-term contract quotes

Jiangxi Tungsten Industry Holding Group Co., Ltd.'s guidance price for national standard grade one black tungsten concentrate in the second half of March 2025 is 140,500 yuan/mt, compared to 141,000 yuan/mt in the first half of March.

Chongyi Zhangyuan Tungsten Co., Ltd.'s long-term contract quotes for the second half of March are as follows: 1. 55% black tungsten concentrate: 137,500 yuan/mt, down 1,500 yuan/mt from the previous round; 2. 55% white tungsten concentrate: 136,500 yuan/mt, down 1,500 yuan/mt from the previous round; 3. Ammonium Paratungstate (national standard zero grade): 206,000 yuan/mt, down 3,000 yuan/mt from the previous round. Note: The above prices include 13% VAT.

The Ganzhou Tungsten Association's forecasted average prices for tungsten products in March 2025 show that 55% black tungsten concentrate is 139,000 yuan/mt, down 4,000 yuan/mt from the previous quote; APT 209,000 yuan/mt, down 3,500 yuan/mt; medium-grain tungsten powder 320 yuan/kg, down 2 yuan/kg.

Black tungsten concentrate and ammonium paratungstate have been stable since mid-March

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Price-wise:

According to SMM quotes, on March 21, the price of black tungsten concentrate (≥65%) was 137,000~138,000 yuan/mt, with an average price of 137,500 yuan/mt. This average price has remained at 137,500 yuan/mt since March 11. For ammonium paratungstate (domestic), the average price has remained at 207,000 yuan/mt since March 13.

Spot market:

Although the resumption of production by tungsten raw material enterprises has increased supply, mine suppliers are unwilling to lower prices, and the supply of circulating goods remains tight. The recovery of market demand is slow, and downstream enterprises are reluctant to purchase at high prices. Despite the recent increase in inquiries from the downstream market, the overall market remains in a stalemate between upstream and downstream players, with a strong sentiment of waiting and watching, and low trading activity.

Ammonium paratungstate exports in February down 25.09% YoY

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In terms of ammonium paratungstate export volumes, according to data from the General Administration of Customs, the export volumes for the first two months of this year were 102.5 tons and 20 tons, respectively. Compared to the export data for the first two months of 2024, which were 51 tons and 26.7 tons, January exports of ammonium paratungstate increased by 100.98% YoY, while February exports decreased by 25.09% YoY. According to customs data, the total export volume of ammonium paratungstate in 2024 was 782.4 tons, a decrease of 2.53% from 802.7 tons in 2023.

On February 4, the Ministry of Commerce and the General Administration of Customs issued an announcement, deciding to implement export controls on related items of tungsten, tellurium, bismuth, molybdenum, and indium. The announcement took effect on the date of issuance. In response to inquiries, a spokesperson for the Ministry of Commerce stated that implementing export controls on related items such as tungsten is a common international practice. As a major global producer and exporter of these items, China has long been committed to fulfilling its international obligations, including non-proliferation. Based on the need to maintain national security and interests, it legally implements export controls on specific items. The addition of these items reflects a balanced approach to development and security, which is conducive to better maintaining national security and interests, fulfilling international obligations, and ensuring the stability and security of the global industrial and supply chains. Exports that comply with relevant regulations will be permitted.

》Ministry of Commerce and General Administration of Customs: Implementing export controls on related items of tungsten, tellurium, bismuth, molybdenum, and indium

Outlook:

Before there is a significant improvement in downstream demand for tungsten, the tight supply of raw materials may keep tungsten prices in a stalemate between upstream and downstream players. If there is a noticeable change in either supply or demand, the current deadlock in the tungsten market could be broken. The market is currently waiting for more positive signals from the demand side and is also monitoring the export situation of companies that comply with the relevant regulations for tungsten-related items.