SMM Analysis On China October APT Production And November Forecast

According to SMM statistics, China's APT production in October decreased by approximately 5% MoM. The main reasons for the decline in production are the high domestic tungsten concentrate prices and the slow growth in market demand, leading to high raw material costs that cannot be effectively passed down the industry chain, resulting in frequent losses for APT. This situation has dampened the production enthusiasm of APT smelters, with some smelters conducting maintenance and reducing production in early and mid-October, resulting in a decrease in APT production.

Entering November, most APT smelters have completed maintenance and resumed normal production. With the increase in year-end stocking and long-term order delivery demand, the possibility of further production cuts by smelters is low, so APT production is expected to see a slight increase this month.