SMM July 11, 2025:
Affected by tight tungsten supply, multiple tungsten enterprises raised their long-term contract quotes for the first half of July, with prices of tungsten industry chain-related products generally rising since July. Bao Gang United Steel and China Northern Rare Earth announced an increase in the associated transaction price of rare earth concentrate for Q3 2025, marking the fourth consecutive quarterly QoQ increase in rare earth concentrate prices since Q4 2024. The price hike, coupled with China Northern Rare Earth's sharply higher anticipated earnings growth and bullish market expectations for future rare earth demand, drove strong performance of rare earth stocks. These factors fueled a surge in the minor metal sector, which rose 4.59% as of 13:37 on July 11. Individual stocks saw: China Northern Rare Earth and Huayang New Materials hit daily limits, Shenghe Resources hit daily limit, Zhongke Magnetic Industry surged over 15%, while Earth-Panda, China Rare Earth, JL MAG Rare-Earth, Zhenghai Magnetic Material, Yunnan Germanium, Xiamen Tungsten, and China Tungsten High-Tech also ranked among top gainers.
News
[SMM Commentary: QoQ increase of 1.51%! Bao Gang United Steel and China Northern Rare Earth raise rare earth concentrate prices for Q3 again!] China Northern Rare Earth announced on the evening of July 10: Based on the rare earth concentrate pricing methodology and Q2 2025 rare earth oxide prices, after calculation and approval at the company's 11th general manager office meeting in 2025, the Q3 2025 rare earth concentrate transaction price was adjusted to 19,109 yuan/mt (dry basis, REO=50%), with a 382.18 yuan/mt adjustment for each 1% variation in REO content (tax excluded). This price represents a 284 yuan/mt increase from the Q2 2025 transaction price of 18,825 yuan/mt, equivalent to a 1.51% QoQ rise. . The Q3 transaction price continues the QoQ upward trend observed in Q1 and Q2 2025. In Q1 2025, the price rose 4.7% QoQ, followed by a 1.11% QoQ increase in Q2, and a 1.5% QoQ rise in Q3. Reviewing 2024 price changes: Q1 2024 saw a slight QoQ increase, Q2 registered a notable QoQ decline, Q3 showed a marginal QoQ decrease approaching stabilization, and Q4 returned to QoQ growth. 》Click for details
[China Northern Rare Earth's H1 net profit expected to surge 1,882.54%-2,014.71% YoY] China Northern Rare Earth announced on the evening of July 9: Preliminary estimates by the company's finance department indicate projected net profit attributable to parent company owners for H1 2025 will reach 900 million-960 million yuan, representing an increase of 855 million-915 million yuan compared to the same period last year (legally disclosed data), with a YoY growth of 1,882.54% to 2,014.71% . It is expected that the net profit attributable to the owners of the parent company, excluding non-recurring gains and losses, will reach 880 million to 940 million yuan for the first half of 2025, representing an increase of 865 million to 925 million yuan compared with the same period last year (statutory disclosure data), up 5538.33% to 5922.76% YoY.
[Zhangyuan Tungsten Raises Long-Term Contract Quotations for First Half of July]Per Chongyi Zhangyuan Tungsten's July 7 announcement: The long-term contract procurement quotations for the first half of July from Chongyi Zhangyuan Tungsten Co., Ltd. are as follows: 1. 55% black tungsten concentrate: 172,000 yuan/mt, up 2,000 yuan/mt from the previous round; 2. 55% white tungsten concentrate: 171,000 yuan/mt, up 2,000 yuan/mt from the previous round; 3. Ammonium paratungstate (APT, national standard Grade 0): 252,500 yuan/mt, up 1,500 yuan/mt from the previous round.
Jiangxi Tungsten Holding Group Co., Ltd. set the guidance price for national standard Grade 1 black tungsten concentrate at 173,000 yuan/mt for the first half of July 2025, marking a 1,000 yuan/mt increase from the guidance price for the second half of June.
Spot Market
Rare Earth Spot Market:
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On July 11, SMM's quotation range for Pr-Nd oxide stood at 455,000-457,000 yuan/mt, with an average price of 456,000 yuan/mt, reflecting a 0.55% increase from the previous trading day. Bolstered by the quarterly price hikes in rare earth concentrate transactions between China Northern Rare Earth and Bao Gang United Steel since Q4 2024, the entire rare earth industry chain registered gains on July 11. Concerns persist about potential oxide production cuts due to temporary shutdowns at some rare earth companies, while ion-adsorption ore imports from Southeast Asia remain constrained by ongoing rainy season impacts. Coupled with optimistic demand expectations for traditional peak seasons, multiple market participants anticipate rare earth prices will continue holding up well. Future developments warrant monitoring of magnetic material manufacturers' procurement tenders.
Tungsten Spot Market:
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On July 11, SMM's price for black tungsten concentrate (≥65%) was 175,000-176,000 yuan/mt, averaging 175,500 yuan/mt - unchanged from the previous trading day but up 3,000 yuan/mt (1.74%) from the 172,500 yuan/mt low on June 27. Tight tungsten raw material supply has led mine suppliers to resist lowering prices, resulting in scarce low-priced spot cargo. Since July, tungsten prices have maintained an upward trajectory overall.
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