Tungsten market shows divergence, with upstream ore prices fluctuating at highs, while downstream sector faces pressure [SMM Tungsten Daily Review]

SMM News on June 16:

Today, the tungsten market showed a slight decline. From the perspective of the upstream and downstream of the industry chain, the supply of ore remained tight, with firm quotations. Some traders closed spot orders at prices around 171,000 yuan/mt. Downstream APT and powder sectors experienced a slight decrease due to weak end-use demand.
Ore: As of June 16, SMM's wolframite concentrate (65%) closed at 173,000-174,000 yuan/standard mt, unchanged from the previous trading day. There was no news of increased production at the ore end, and market inventory remained low, with limited room for the overall market to loosen.
Ammonium Paratungstate: Today, SMM's ammonium paratungstate (≥88.5%) was quoted at 250,000-254,000 yuan/mt, with an average price of 252,000 yuan/mt, down 1,000 yuan/mt from the previous trading day. Affected by some suppliers' cashing in for arbitrage, the market liquidity improved. Coupled with weakening orders from downstream enterprises, the market was under pressure, and prices showed a slight decline. However, due to poor industry profitability, cost support at the enterprise level remained strong.
In the short term, the tungsten market is expected to consolidate at high levels due to cost support, but weak end-use demand will suppress price increases. In the short term, a tug-of-war between longs and shorts is expected, with prices consolidating at high levels.

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