APT Long-Term Contract Prices Surge Significantly, Tungsten Market Repeatedly Hits New Highs [SMM Tungsten Daily Review]

SMM November 3

Today, the tungsten market continued its sharp rally. A tungsten enterprise in Xiamen announced its APT procurement price for the first half of November, with the new long-term contract prices up 52,000 yuan/mt from the previous period to 445,000 yuan/mt, boosting market bullish sentiment. Tungsten market quotations across the upstream and downstream industry chain surged again today. Upstream producers held firm offers, with tungsten concentrate quotations breaking through 300,000 yuan/mtu. Spot APT quotations reached a historical high of 450,000 yuan/mt, though actual order follow-up was limited. Downstream powder and alloy enterprises faced significant cost pressure, mainly following the upward trend in the raw material market.

Mine side: As of November 3, SMM black tungsten concentrate (65%) closed at 301,000-302,000 yuan/mtu, up 4,000 yuan/mtu from the previous trading day. Tungsten concentrate enterprises were reluctant to sell, holding back inventory, resulting in limited market transactions and difficulties for downstream restocking. Mainstream mines primarily maintained shipments under long-term contracts, while some low-grade ore auction prices exceeded online prices.

Ammonium paratungstate (APT): Today, SMM ammonium paratungstate (≥88.5%) was quoted at 440,000-450,000 yuan/mt, up 6,000 yuan/mt from the previous trading day. According to SMM data, the domestic APT industry's profitability improved in October compared to the previous period, with October industry production increasing by 100 mt MoM to around 10,400 mt. Enterprises mostly fulfilled previous long-term contracts and orders, leading to low spot cargo circulation. Additionally, planned maintenance at some enterprises intensified concerns about future supply deficits. APT producers held firm spot order quotations, making restocking difficult for downstream players and traders. The overseas tungsten market traded sideways at high levels, with European APT fluctuating at $610-685/mtu (equivalent to 384,000-431,200 yuan/mt), flat from last Friday. Cost transmission in the powder market was rapid. Enterprises maintained low raw material inventory and were cautious about accepting new orders, negotiating prices individually. Producers adjusted offers flexibly. As of today, SMM tungsten carbide powder closed at 655 yuan/kg, up 10 yuan/kg from the previous trading day, and tungsten powder closed at 670 yuan/kg, up 10 yuan/kg.

Ferrotungsten: The ferrotungsten market held up well. Steel mills in Henan and other regions launched tenders, but industry transaction prices struggled to keep up with the rising raw material costs, resulting in poor profitability. Today, mainstream 70% ferrotungsten quotations were concentrated at 406,000-411,000 yuan/mt, up 6,000 yuan/mt from the previous trading day. European ferrotungsten prices continued to climb, closing at $90-93.5/kg W, equivalent to approximately 448,000-465,400 yuan/metric ton.

Tungsten scrap: Tungsten scrap suppliers held strong bullish sentiment, holding back from selling, leading to limited market transactions. Today, SMM tungsten scrap bar closed at 442.5 yuan/kg, unchanged from the previous trading day. Downstream players were wary of high prices, resulting in generally muted trading activity.

In the short term, the tungsten market faces a prominent supply-demand mismatch for raw materials. The tight circulation of upstream ore and APT is difficult to alleviate quickly, while high costs continue to test the resilience of downstream and end-use industries. As of now, some domestic mines have exhausted their first batch of quotas, preventing enterprises from shipping products, which exacerbates industry supply tightness. According to feedback from some companies, China will not uniformly announce annual mining quotas this year, and new quotas await policy guidance. The market widely believes that future supply of tungsten concentrate will remain tight. Suppliers are reluctant to sell, while downstream hard alloy enterprises face significant funding and cost pressures. Industry orders are flowing back to medium and large enterprises, resulting in severe uneven distribution within the industry. In the short term, the tungsten industry chain is characterized by both high prices and high risks. Subsequent attention should be paid to the operation and shipment status of domestic mines as well as guidance from industry long-term contracts.