Follow-up on Price Increase in Purchases by Major Manufacturers, Tungsten Market Consolidates at High Levels [SMM Tungsten Daily Review]

SMM June 10 News:

Today, the tungsten market mainly held up well, with ore supply remaining relatively tight and market offers remaining firm. A major enterprise in Guangdong announced its raw material procurement prices for the first half of June today. Both tungsten concentrate and ammonium paratungstate (APT) procurement prices increased in line with the market price rise. Specifically, the price of tungsten concentrate rose by 19,000 yuan/mt MoM from the previous round, while APT increased by 26,000 yuan/mt MoM. The cost pressure on the demand side is significant, with downstream demand from end-users such as cemented carbide weakening. Intermediate tungsten product enterprises are finding it difficult to follow the price increases, leading to intense back-and-forth negotiations between upstream and downstream in the industry chain. In the short term, the market is expected to hold up well with fluctuations. Subsequent developments will be closely monitored, including Sino-US tariff negotiations and downstream demand conditions.

Ore Supply: Today, the price of tungsten concentrate continued to fluctuate at highs, with market supply remaining relatively tight. Suppliers' offers remained firm, and downstream demand was mainly driven by just-in-time procurement. As of June 9, SMM's black tungsten concentrate (65%) closed at 173,000-174,000 yuan/mtu, unchanged from the previous trading day.

Ammonium Paratungstate (APT): Today, SMM's APT (≥88.5%) was quoted at 251,000-255,000 yuan/mt, with an average price of 253,000 yuan/mt, unchanged from the previous trading day. The APT sector enjoys strong cost support, but enterprises' profitability is poor. However, downstream powder end procurement enthusiasm is low, with market costs mainly covered by long-term contracts. New orders and spot orders are sluggish.

Powder End: Today, SMM's tungsten carbide powder was quoted at 368-373 yuan/kg, with an average price of 370.5 yuan/kg, unchanged from the previous trading day. Suppliers are actively shipping goods, but downstream demand from cemented carbide and other enterprises is average, with most procurement being just-in-time.

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