Upstream and downstream transactions in the tungsten market remain at a stalemate [SMM Tungsten Daily Review]

On June 25, the tungsten market was mainly characterized by a stalemate. Upstream mine inventory was low, and quotes remained firm. Downstream industries such as APT were operating at a loss, and demand needed to be boosted, with the market unable to keep up with the price rise. There was a clear back-and-forth negotiation between upstream and downstream, and the market atmosphere was cautious.

Mine side: As of June 25, SMM's black tungsten concentrate (65%) closed at 172,000-173,000 yuan/mtu, unchanged from the previous trading day. Market inventory was low, with upstream shipments mainly under long-term contracts. Downstream demand was met through restocking, and overall transactions were stable.

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, unchanged from the previous trading day. Some spot orders in the market showed a slight decline. The overseas tungsten market was generally stable today, with European ferrotungsten priced at 51.75-52 US dollars/kg (equivalent to 260,000-261,000 yuan/mtu in RMB) and European APT at 430-475 US dollars/mtu (equivalent to 273,000-302,000 yuan/mt in RMB). This week, influenced by the three-month extension of the export ban in the DRC, the spot price of cobalt powder has risen significantly. Downstream cemented carbide factories are facing prominent cost pressures, and enterprises are reluctant to take orders.

In the short term, from a macro perspective, the ceasefire between Israel and Iran has alleviated geopolitical risks and reduced the demand for capital hedging, which is short-term bearish for the tungsten market. On the fundamentals side, the domestic tungsten market is in a tight balance between upstream and downstream. Exports of intermediate tungsten products have declined, but export demand for terminal products has improved. The market is undergoing a restructuring of the industry chain. Currently, mine supply and prices remain the dominant factors in the industry chain's pricing, and short-term prices are expected to remain high and range-bound.

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