Overseas APT Prices Rise Sharply, Domestic Tungsten Market Sees Narrowed Gains [SMM Tungsten Daily Report]

SMM November 10

Today, the tungsten market fluctuated rangebound. Quotations for downstream intermediate products remained firm, with prices mostly showing catch-up increases. Transactions in the upstream ore segment were scarce, as some suppliers liquidated holdings for profit, with transaction prices mostly hovering around previous levels. The second batch of tungsten mining quotas in Jiangxi and other regions have been allocated to various county-level areas. Currently, the grading departments are gradually distributing the quotas to mines, with expectations of a total volume decrease. Today, a tungsten enterprise in Guangdong released its long-term contract prices for the first half of November: the procurement price for 55% tungsten concentrate under long-term contracts increased by 27,000 yuan per metric ton unit to 309,000 yuan/mtu, while the APT price was set at 453,000 yuan/mt, which is below the current spot market price. Market views are divided, and enterprises are trading cautiously.

Ore Segment: As of November 10, SMM black tungsten concentrate (65%) closed at 314,000-315,000 yuan/mtu, flat from the previous trading day, but up 17,000 yuan/mtu cumulatively over the month. As the second batch of tungsten concentrate quotas are gradually allocated to enterprises, some mines opted to sell at high prices, leading to an increase in shipments in the tungsten concentrate market. Market prices mainly fluctuated within a narrow range. Follow-up attention will be on the pace of mine shipments.

Ammonium Paratungstate (APT): Today, SMM ammonium paratungstate (≥88.5%) was quoted at 455,000-470,000 yuan/mt, up 2,500 yuan/mt from the previous trading day. Spot order circulation in the APT market was scarce, with enterprise offers remaining firm. Some spot orders were negotiated above 470,000 yuan/mt. Downstream powder plants restocked actively. APT prices are expected to remain firm in the near term. Overseas APT prices rose significantly today. European APT fluctuated between $647.5-700/mtu (equivalent to 408,000-441,000 yuan/mt), up $33/mtu from last Friday. The tungsten powder market operated steadily today. Enterprises mostly shipped according to previous orders, with few new orders in the industry. Quotations for new orders were also mostly negotiated on a case-by-case basis, resulting in scarce offers. However, upstream APT prices continued to rise unabated, pushing up subsequent costs for the powder segment. The market is expected to have room for catch-up increases. As of today, SMM tungsten carbide powder closed at 700 yuan/kg, up 55 yuan/kg cumulatively over the month, while tungsten powder closed at 720 yuan/kg, up 60 yuan/kg over the month.

Ferrotungsten: Ferrotungsten market transactions were moderate. Several steel mills in Henan and Jiangsu participated in tenders. Supported strongly by the cost side, the transaction center of gravity in the market shifted upwards noticeably. Today, the mainstream quotation for 70% ferrotungsten was concentrated at 425,000-432,000 yuan/mt, up 2,000 yuan/mt from the previous trading day and up 26,000 yuan/mt cumulatively over the month. The price center for European ferrotungsten also rose compared to previous periods. As of today, European ferrotungsten closed at $92-94 per kilogram of tungsten, up $1.25 per kilogram of tungsten from previous periods, equivalent to approximately 459,000-469,000 yuan per metric ton.

Tungsten Scrap: Views on the tungsten scrap market diverged. Some suppliers, concerned about potential future price declines, increased their profit-taking activities. Tungsten scrap prices primarily fluctuated rangebound. Today, SMM's tungsten scrap bar price closed at 455.5 yuan/kg, flat compared to the previous trading day, but accumulated a monthly increase of 13 yuan/kg.

Short-term, with the finalization of long-term contracts by major enterprises and increased shipments from some mines, the upward momentum in the tungsten market slowed down. In the short term, market trends may diverge due to shifts in market sentiment, with upstream mine-side prices showing signs of stagnation, while downstream intermediate products still have room for catch-up growth due to excessively high raw material costs and urgently needed profit recovery. Medium and long-term, considering the information indirectly reflected by provincial tungsten mining quota data from mainstream sources, China's second batch of tungsten mining quotas maintained a tightening trend. Meanwhile, downstream sectors entered a critical period for year-end procurement strategy planning. Emerging sectors maintained growth expectations for tungsten consumption. The medium to long-term tight supply situation in the tungsten market is expected to persist, providing underlying support for the market.