Tungsten Market Long-term Contracts Raised Again, Demand Under Pressure [SMM Analysis]

At the beginning of the week, a new round of long-term contract prices was gradually announced, showing a significant upward trend:

Chongyi Zhangyuan Tungsten Co., Ltd.'s long-term contract prices for the second half of May are as follows (all prices include 13% VAT):
1. 55% Black Tungsten Concentrate: 156,000 yuan/mt, up 12,500 yuan/mt from the previous quote;
2. 55% White Tungsten Concentrate: 155,000 yuan/mt, up 12,500 yuan/mt from the previous quote;
3. Ammonium Paratungstate (National Standard Zero Grade): 233,000 yuan/mt, up 22,000 yuan/mt from the previous quote.

Jiangxi Tungsten Holding Group Co., Ltd.'s guidance price for National Standard First Grade Black Tungsten Concentrate for the second half of May 2024 is 156,000 yuan/mt (up 12,000 yuan/mt from the previous quote).

Xiamen Tungsten has suspended long-term contract quotations today.

[Supply Side]
Currently, the main theme of the tungsten market remains "tight supply at the mine end driving tungsten prices to continue rising." Some mine-end sellers conducted profit-taking operations at the beginning and middle of this month, slightly improving the market circulation of raw materials, with purchases and sales proceeding as needed.

[Demand Side]
Some photovoltaic companies have reported that due to the relatively long lifespan and low cutting loss rate of photovoltaic tungsten wire, its market share will continue to expand as silicon wafers become thinner. Currently, the usage rate of photovoltaic tungsten wire in some photovoltaic companies has reached 50-70%, indicating a strong demand potential.

Comprehensive Analysis: At present, the tight supply situation of tungsten raw materials has not yet eased. Together with the significant pressure on APT smelters (rapidly rising raw material costs + stable demand hindering price increases), only long-term contract production deliveries are maintained, so the market circulation of raw materials remains tight. The upward momentum of tungsten prices has slowed, but with the support of long-term contract prices, the possibility of short-term tungsten price increases remains high.