Several Tungsten Companies Continue to Raise Long-Term Contract Prices; When Will the Tight Raw Material Supply Situation Reach a Turning Point? [SMM Commentary]

SMM January 20 News: The impact of maintenance by tungsten raw material enterprises on supply continues. This wave of tungsten price increases, which began in late December due to market concerns over tight raw material supply, limited supplier inventories, and increasing maintenance by enterprises, is still ongoing. Entering the second half of January, multiple tungsten enterprises, including Jiangxi Tungsten Industry, Zhangyuan Tungsten Industry, and a large tungsten enterprise in Fujian, have continued to raise their long-term contract prices for the second half of January. With downstream demand showing no significant improvement and limited acceptance of high-priced materials, the supply side of tungsten raw materials remains in a situation where low-priced materials are difficult to procure. Amid the stalemate and tug-of-war between upstream and downstream, how long can this supply-driven tungsten price increase last?

Jiangxi Tungsten Industry, Zhangyuan Tungsten Industry, and Other Tungsten Enterprises Raise Long-Term Contract Prices

Jiangxi Tungsten Holding Group Co., Ltd.'s guidance price for national standard first-grade black tungsten concentrate for the second half of January 2025 is 144,000 yuan/mtu, up from the previous guidance price of 143,500 yuan/mtu.

Chongyi Zhangyuan Tungsten Co., Ltd.'s long-term contract prices for the first half of January are as follows: 1. 55% black tungsten concentrate: 143,000 yuan/mtu, up by 1,500 yuan/mtu from the previous price; 2. 55% white tungsten concentrate: 142,000 yuan/mtu, up by 1,500 yuan/mtu from the previous price; 3. Ammonium paratungstate (national standard zero grade): 212,500 yuan/mt, up by 1,500 yuan/mt from the previous price. Note: The above prices include 13% VAT.

A large tungsten enterprise in Fujian has set its cash long-term contract purchase price for the second half of January at 212,500 yuan/mt, up by 1,500 yuan/mt compared to the previous APT price of 211,000 yuan/mt.

2024 Black Tungsten Concentrate Prices Rise by 16.53% Price Center Continues to Shift Upward in January

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From the price trend of black tungsten concentrate (≥65%): The average price on December 29, 2023, was 122,500 yuan/mtu, while the average price on December 31, 2024, was 142,750 yuan/mtu, reflecting an increase of 20,250 yuan/mtu in 2024, with an annual growth rate of 16.53%.

According to SMM quotations: On January 20, the price of black tungsten concentrate (≥65%) was 144,500–145,000 yuan/mtu, with an average price of 144,750 yuan/mtu, unchanged from the previous trading day. This average price of 144,750 yuan/mtu represents an increase of 2,500 yuan/mtu, or 1.76%, compared to the previous low of 142,250 yuan/mtu on December 25, 2024. Market expectations of tight tungsten raw material supply have gradually strengthened, supporting a slight price increase since late December. Although downstream tungsten demand has not improved, limited supplier inventories and increased maintenance by raw material enterprises have tightened supply, driving the price center upward.

Market Outlook

Entering 2025, the tight supply of raw materials has not eased, and multiple tungsten enterprises have raised their prices for both the first and second halves of January. In 2024, black tungsten concentrate prices increased by 16.53%, mainly due to tight raw material supply. In 2025, the tight supply situation remains unresolved, and low-priced materials are difficult to procure in the market. However, the domestic tungsten market demand remains relatively stable, with downstream procurement of high-priced raw materials being limited and primarily just-in-time procurement. As the year-end approaches, market transactions are expected to become increasingly sluggish. Additionally, some market participants predict that the tight supply situation, influenced by maintenance and environmental protection-driven production restrictions, may persist until March or April.

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