Ammonium Paratungstate Production Rebounds: Challenges and Opportunities Coexist in the Tungsten Market [SMM Analysis]

SMM, March 2: In February, ammonium paratungstate (APT) production showed a significant rebound. According to SMM data, APT production in February increased by approximately 21% MoM. This growth was primarily driven by the rapid resumption of production by major smelters after the Chinese New Year, actively fulfilling long-term contract orders, which boosted overall industry production.

With the end of the Chinese New Year holiday, smelters quickly resumed operations. This proactive response to market demand not only benefited the enterprises themselves but also laid the foundation for the overall improvement in APT production levels. During this process, although the supply side of tungsten ore faced certain tightness, social inventory of ores decreased in February, and spot supply entered the market at a relatively slow pace, maintaining a relatively stable raw material supply. This steady supply of raw materials provided assurance for the post-holiday production recovery of enterprises.

Looking ahead to March, the market appears calm on the surface but still harbors uncertainties. Firstly, with the gradual recovery of ore supply, APT raw material supply is expected to increase. However, it is worth noting that due to sufficient downstream stocking before the holiday, the post-holiday recovery in downstream demand has been relatively sluggish, leading to a lack of confidence in the industry.

Against this backdrop, many enterprises hold a cautious attitude toward the market demand trend in March. Although raw material supply may improve, significant production growth may be difficult to achieve if downstream demand does not increase in tandem. Nevertheless, industry insiders generally expect that by mid-to-late March, as the market gradually returns to normal, downstream demand may improve.

In summary, although APT production in February demonstrated a strong rebound, the growth rate in March may slow due to multiple influencing factors. With market participants generally adopting a wait-and-see approach, enterprises need to cautiously address potential market fluctuations to ensure a dynamic balance between production and market demand.

Overall, the APT market in the short term will face a situation of both challenges and opportunities. Effectively leveraging changes in the supply chain and market demand will test the market responsiveness and future strategic planning of each related enterprise.

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