Tungsten Market Hits New High Again, Tool Industry and Others Issue Price Increase Letters [SMM Tungsten Daily Review]

SMM October 29

The tungsten market held up well today. The price of tungsten raw materials rose sharply, and the market price of tungsten hit a new record high again. Industrial transactions shrank, while downstream hard alloy enterprises and tool enterprises fell into a state of fear of high prices and reduced purchasing again. Terminal industries such as industrial tools issued price increase letters one after another to cope with the pressure of future raw material cost fluctuations. Transactions in the tungsten concentrate market were scarce, with mines mainly shipping under long-term contracts. Some mines had not yet received their second batch of quotas, and enterprises were waiting for new quotas before they could ship goods. The pattern of phased tight supply continued.

Mine end: As of October 29, SMM black tungsten concentrate (65%) closed at 290,000-291,000 yuan/mtu, up 4,000 yuan/mtu from the previous trading day, with a cumulative increase of 103.5% year-to-date. Mine mining quotas were in short supply, and market circulation continued to tighten. Suppliers at the mine end were optimistic about the future market, holding back stocks and reluctant to sell, which intensified market tension. Transaction prices for spot orders rose rapidly, while downstream restocking was cautious.

Ammonium paratungstate: Today, SMM ammonium paratungstate (≥88.5%) was quoted at 415,000-435,000 yuan/mt, up 4,000 yuan/mt from the previous trading day, with a cumulative increase of 102% year-to-date. Spot order circulation in the ammonium paratungstate market was relatively low. While enterprises maintained long-term contracts, spot order quotations remained firm. The downstream powder end entered a new round of restocking, and the phased supply-demand imbalance was prominent, driving transaction prices significantly higher. The overseas tungsten market continued to follow the upward trend. As of today, European APT was at $610-685/mtu, equivalent to 384,000-431,200 yuan/mt, up $5/mtu from last Friday. The overseas tungsten market resonated with the domestic rise, stimulating bullish sentiment in the market. The powder market was filled with a strong wait-and-see sentiment. Enterprise quotations mainly followed cost increases, with some enterprises suspending quotations. Downstream restocked based on rigid demand, and market trading was slightly deadlocked. As of today, SMM tungsten carbide powder closed at 630 yuan/kg, up 10 yuan/kg from the previous trading day, and tungsten powder closed at 645 yuan/kg, up 10 yuan/kg from the previous trading day, with a cumulative increase of 105% year-to-date.

Ferrotungsten: Recently, ferrotungsten steel tenders improved somewhat. Supported by rising costs and improved demand, ferrotungsten prices also increased compared to the previous period. Today, the mainstream quotation for 70% ferrotungsten was concentrated at 393,000-398,000 yuan/mt, up 3,000 yuan/mt from the previous trading day. European ferrotungsten prices continued to climb, with European ferrotungsten closing at $87-90.75/kg W, equivalent to approximately 433,200-451,900 yuan/mt.

Tungsten scrap: Tungsten scrap market supply was tight. Suppliers refused to budge on prices when selling. Market transactions mostly rose slightly. Today, SMM tungsten scrap bar closed at 434.5 yuan/kg, up 6 yuan/kg from the previous trading day. Downstream was wary of high prices, and transaction performance was average.

Short term, the upward adjustment in market long-term contract prices has boosted market confidence. Combined with the persistently tight supply of key raw materials such as tungsten ore and ammonium paratungstate (APT), market transaction prices have held up well. Downstream powder and hard alloy enterprises have shown resilient demand, and the cycle of restocking for rigid needs has stimulated raw materials to maintain strong performance. Medium and long term, annual production quotas have not yet been announced, making the trajectory of market supply unclear. However, expectations for policy tightening are strong, which will support the tungsten market. With global trade barriers intensifying, the tungsten market is expected to continue fluctuating at highs.