After the tight supply drove up the price of black tungsten concentrate to hit a high of 128,000 yuan/ton last seen at the end of 2013, the price of APT and tungsten powder also moved up. After raising their long-term contract quotations in several rounds, Jiangxi Tungsten Co., Ltd., Zhangyuan Tungsten Co., Ltd. and other tungsten companies continued to raise their long-term contract quotations in the first half of April, and the increase was larger than that in the second half of March. This wave of tungsten price increases driven by tight supply may continue, as many industry insiders have expected.

Many tungsten companies continued to raise their quotations for long-term orders

Jiangxi Tungsten’s guide price for national standard first-grade black tungsten concentrate is 128,500 yuan/ton in the first half of April 2024 (an increase of 2,500 yuan/ton from the previous round of quotations).

The long-term purchase price (cash) of a large tungsten company in Fujian in the first half of April: APT 187,500 yuan/ton (an increase of 2,500 yuan/ton from the previous round of quotation).

Chongyi Zhangyuan Tungsten Industry Co., Ltd.’s long-term order quotation in the first half of April is as follows: (The above prices include 13% value-added tax) 1. Black tungsten concentrate (WO3≥55%): 126,500 yuan/standard ton, which is higher than the previous round The quotation is increased by 2,000 yuan/standard ton; 2. Scheelite concentrate (WO3≥55%): 125,500 yuan/standard ton, which is 2,000 yuan/standard ton higher than the previous round of quotation; 3. Ammonium paratungstate (national standard zero grade): 188,500 yuan/ton, an increase of 3,500 yuan/ton from the previous round of quotations. Zhangyuan Tungsten Industry’s price adjustments for long-term orders in the second half of March are as follows: 1.55% black tungsten concentrate: 124,500 yuan/standard ton, an increase of 1,000 yuan/standard ton compared with the first half of March; 2.55% scheelite concentrate:124,500 yuan/standard ton; the price of ammonium paratungstate (national standard zero grade) was 185,000 yuan/ton, an increase of 1,500 yuan/standard ton compared with the first half of March.

The price of wolframite concentrate has increased by 7.35% in the past four months, while the price of APT and tungsten powder has increased by more than 6% in the past four months.

On the raw material ore side: According to SMM, under the influence of environmental protection inspectors in the main tungsten ore producing areas, the output of tungsten raw materials has decreased and the supply is relatively tight, resulting in sellers holding back cargoes. The quoted price of black tungsten concentrate (≥65%) on April 3 was 127,500~12,800 yuan/standard ton, and its average price was 127,750 yuan/standard ton. As of April 3, its average price has increased by 8,750 yuan/standard ton, an increase of 7.35%.

Regarding ammonium paratungstate (APT): Due to the significant pressure of smelters, the price of ammonium paratungstate has been raised amid strong upward trend of tungsten raw material prices. On April 3, the price of ammonium paratungstate was 188,000-189,500 yuan/ton, and the average price was 188,750 yuan/ton, which was an increase of 11,250 yuan/ton from the low of 177,500 yuan/ton on November 16, 2023, an increase of 6.38%.

Tungsten powder: The price of tungsten powder products has moved up due to the rise in raw material prices. However, due to the impact of the lack of concentrated replenishment of the cemented carbide tool market before the Qingming Festival, market transactions are currently on demand. On April 3, the price of tungsten powder was 282-284 yuan/kg, and the average price was 283 yuan/kg, which was an increase of 16.5 yuan/kg compared with the average price of 266.5 yuan/kg on November 17, 2023, an increase of 6.19%.

On the demand side, there is currently a branch of downstream demand - the demand for CNC tool market has shown signs of improvement. SMM expects that tungsten prices will continue to be strong as the current tight tungsten supply has not been alleviated and many tungsten companies continue to increase prices.