Tungsten Market Stable at Mine End, Downstream Ferrotungsten Costs Drive Price Increase [SMM Tungsten Daily Review]

SMM June 13 News:

Today, the tungsten market was largely stable. Tungsten concentrate enterprises mostly made shipments under long-term contracts. Traders released some of their inventory. Inventory levels at the downstream mine end remained low, but fear of high prices persisted, with restocking mainly driven by immediate needs. The increase in steel procurement volume, coupled with cost drivers, led to a catch-up rally in ferrotungsten prices.

Ore end: Today, the price of tungsten concentrate continued to fluctuate at highs. There was some relaxation in ore end shipments, and market liquidity improved somewhat. However, the mainstream transaction prices in the market remained high. Inventory levels at the downstream end were low, and the willingness to restock strengthened somewhat. However, due to the high price level, restocking was mainly driven by immediate needs. As of June 13, SMM black tungsten concentrate (65%) closed at 173,000-174,000 yuan/mtu, unchanged from the previous trading day.

Ammonium paratungstate (APT): Today, SMM 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 had strong cost support, but enterprises' profitability was poor, and fear of high prices persisted at the downstream end. Trading was average today. It is reported that European APT was priced at 410-450 US dollars/mtu (equivalent to 261,000-286,000 yuan/mt in RMB), indicating a significant price spread between domestic and overseas APT.

Ferrotungsten: Today, SMM 70 ferrotungsten closed at 258,000-261,000 yuan/mt. The increase in steel procurement volume in the market drove the center of ferrotungsten transaction prices higher. Driven by high costs and relatively stable demand, a catch-up rally may be maintained in the short term.

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