APT Bulk Cargo Tightens and Prices Rise, Tungsten Market Sentiment Diverges [SMM Tungsten Daily Review]

SMM October 16

The domestic tungsten market held steady overall this week. Spot orders for raw ore mostly revolved around long-term contract prices, but trading volume was limited. With the operating rate of the ammonium paratungstate (APT) industry declining for several consecutive months, invisible inventory in the market remained low. Additionally, as enterprises primarily shipped under long-term contracts, spot order availability tightened further, leading manufacturers to refuse to budge on prices. Transaction prices edged up during the week. The scrap tungsten market also recovered from the previous pessimistic atmosphere caused by selling pressure. With recyclers' inventory at low levels, transaction prices were pushed up. After the holiday, overseas tungsten prices accelerated their rebound, narrowing the price spread between domestic and overseas markets rapidly. The export window for ferrotungsten and ammonium paratungstate reopened.

Ore: As of October 16, SMM black tungsten concentrate (65%) closed at 268,000-269,000 yuan/mtu, up 3,000 yuan/mtu WoW. During the week, mines in Guangxi and Guangdong auctioned ore, but downstream smelters showed limited participation, and market transactions remained subdued. It was also reported that a large tungsten mine in Hunan resumed production of white tungsten concentrate, primarily for internal group use. Future releases from this enterprise warrant attention.

Ammonium Paratungstate: Today, SMM ammonium paratungstate (≥88.5%) was quoted at 390,000-395,000 yuan/mt, up 1,000 yuan/mt WoW. The domestic APT industry faced significant cost pressure, and its operating rate declined month by month, falling below 60% in September. Many enterprises prioritized fulfilling long-term contracts, leading to a noticeable decrease in spot orders and speculative circulation. The bargaining center shifted upward, with some manufacturers quoting as high as around 400,000 yuan. The overseas tungsten market held up well. As of today, European APT was at $600-680/mtu, equivalent to 378,000-422,000 yuan/mt, up $20/mtu from pre-holiday levels. The price spread between domestic and overseas markets narrowed, and the export window is expected to open. This week, the powder market showed divergent trends. Downstream hard alloy enterprises' restocking enthusiasm waned after the holiday, and transactions softened. As of today, SMM tungsten carbide powder closed at 600 yuan/kg, down 8 yuan/kg WoW, and tungsten powder closed at 615 yuan/kg, down 10 yuan/kg WoW. Recently, raw materials like cobalt powder performed strongly, increasing cost pressure on downstream hard alloy enterprises. Quotations for tungsten-cobalt alloy products rose compared to previous periods.

Ferrotungsten: Ferrotungsten market transactions were average this week, but rising costs prompted enterprises to refuse to budge on prices. However, actual order follow-up was limited, and prices fluctuated rangebound. Today, mainstream quotations for 70% ferrotungsten were concentrated at 380,000-385,000 yuan/mt, down 5,000 yuan/mt WoW. European ferrotungsten prices continued to climb, closing at $86-89.5/kg tungsten this week.

Tungsten Scrap: The spot tungsten scrap market saw reduced circulation of loose cargo, coupled with significant pre-holiday inventory clearance. Post-holiday, downstream sectors entered a concentrated restocking cycle, leading to firm supplier quotations and an upward shift in the transaction center. Today, SMM's tungsten scrap bar price closed at 410 yuan/kg, up 33 yuan/kg WoW, nearly recovering previous losses.

Short-term, tungsten intermediate smelting product inventories continued to be cleared. With low market inventory, product margins are expected to improve. However, terminal hard alloy enterprises showed weak off-season demand. Combined with news of mine production resumptions, market sentiment turned cautious, awaiting further catalysts. Prices are likely to fluctuate narrowly in the near term. Medium to long-term, full-year production quotas have yet to be announced, leaving supply trends uncertain. But expectations of tighter policies are expected to support the tungsten market. Amid escalating global trade barriers, tungsten prices are likely to hover at highs.