Tungsten Raw Material Market Fluctuated Rangebound, Scrap Tungsten Market Recovered [SMM Tungsten Daily Review]

SMM September 29

Today, the domestic tungsten market mainly fluctuated rangebound. With the finalization of long-term contract prices from mainstream enterprises, transactions in the tungsten raw material market mostly revolved around these long-term contract prices. Ammonium paratungstate was supported by factors such as the cost side and a decline in industry operating rates, leading to firm quotations. The scrap tungsten market had low inventory, and industry recycling became more difficult, resulting in firm supplier quotations. Market transaction prices increased compared to the previous period. After the holiday, the overseas tungsten market held up well, and the price spread between domestic and overseas markets narrowed rapidly, reopening the export window for ferrotungsten and ammonium paratungstate.

Mine side: As of October 13, SMM black tungsten concentrate (65%) closed at 268,000-269,000 yuan/mtu, up 3,000 yuan/mtu from the previous trading day. Today, mines in Guangxi and Guangdong sold through auctions. APT enterprises mainly restocked based on rigid demand. With unclear market trends, downstream participants such as traders showed weak enthusiasm to enter the market, and transactions trended sluggish.

Ammonium paratungstate: Today, SMM ammonium paratungstate (≥88.5%) was quoted at 390,000-393,000 yuan/mt, unchanged from the previous trading day. In the first half of October, domestic ammonium paratungstate long-term contract prices were mostly quoted around 390,000 yuan. Enterprises mainly delivered according to orders. SMM statistics showed that the domestic ammonium paratungstate industry operating rate declined again in September. Spot order circulation in the market was limited, and enterprise quotations remained firm. The overseas tungsten market held up well. As of today, European APT was at $600-670/mtu, equivalent to 378,000-422,000 yuan/mt, up $20/mtu from before the holiday. The price spread between domestic and overseas markets narrowed, and the import window is expected to open. The powder market was relatively stable today, with downstream mainly restocking based on rigid demand. As of today, SMM tungsten carbide powder closed at 608 yuan/kg, and tungsten powder closed at 625 yuan/kg, both unchanged from the previous trading day. Some manufacturers reported low finished product inventories and rejected low-priced spot orders.

Ferrotungsten: The ferrotungsten market mainly operated in the doldrums. Steel mill demand was sluggish, and industry transaction prices declined softly. Today, mainstream quotations for 70% ferrotungsten were concentrated at 385,000-390,000 yuan/mt. European ferrotungsten prices showed a slight increase, closing at $84-88/kg W this week.

Scrap tungsten: Spot circulation in the scrap tungsten market decreased. Additionally, industry inventories were largely cleared before the holiday. After the holiday, downstream entered a concentrated restocking cycle. Suppliers quoted firmly, and the transaction center shifted upward. Today, SMM scrap tungsten rods closed at 387 yuan/kg, up 10 yuan/kg from the previous trading day.

Short-term perspective: The tungsten market may maintain a sideways consolidation in the short term. So far, the second batch of mining quotas has not been announced domestically. Some mines reported that enterprises can apply for new mining quotas as needed, but it requires a certain time cycle. The release of domestic tungsten concentrate volumes is delayed, and the logic of tight supply on the mine side continues, providing bottom support for industry prices. In addition, the escalation of China-U.S. trade friction has led to expectations that overseas end-users may restock in advance, which is favorable for the export of products such as cemented carbide.