Overseas APT Hits $780/mtu Global Tungsten Market Fluctuates at Highs [SMM Tungsten Daily Review]

SMM November 24

This week, the domestic tungsten market mainly maintained an upward trend. Trading volume in the tungsten concentrate market was relatively low, while spot order offers remained firm. Furthermore, major domestic tungsten enterprises raised their long-term contract prices for the second half of November last week, boosting market confidence. Overseas tungsten raw material supply is tight, and production cuts at the Masan Tungsten mine and smelting operations in Vietnam have exacerbated the tight supply situation for overseas tungsten ore and APT. Prices for products like European APT have increased significantly. Some domestic APT enterprises have maintenance expectations in the future, making restocking difficult for the market, and prices are expected to remain high.

Ore End: As of November 24, the SMM black tungsten concentrate (65%) closed at 331,000-332,000 yuan/mtu, up 2,000 yuan/mtu from the previous trading day. It has accumulated a monthly increase of 34,000 yuan/mtu, with a year-to-date increase of approximately 132%. Most mainstream mines are executing shipments under long-term contracts, and spot order trading volume is limited. According to the SMM survey, the second batch of quotas for mines in the Hunan region has mostly been allocated to enterprises. Currently, it is understood that quotas for some mines have decreased YoY, while most mines have remained largely flat YoY. There is not much news from Jiangxi mines yet. Overall, although the mine quotas have just been issued, most mines had already used up part of their quota volume in advance, leaving a relatively small remaining available volume. The volume available for shipment by year-end is limited. Additionally, some mines have already completed their annual targets, resulting in low shipment enthusiasm towards the year-end, which also contributes to a decrease in supply to some extent. Overseas, Masan Tungsten's tungsten concentrate is a major supplier in the overseas market. Recent production cuts at this enterprise have led to tight circulation of overseas tungsten concentrate and some smelting products, keeping overseas prices high and difficult to decline.

Ammonium Paratungstate: Today, the SMM ammonium paratungstate (≥88.5%) quote was 482,000-490,000 yuan/mt, up 1,000 yuan/mt from the previous trading day. It has accumulated a monthly increase of 47,000 yuan/mt. Long-term contract prices for APT from major domestic enterprises for the second half of November were mostly executed at 470,000-478,000 yuan/mt. Industry operating rate increases are limited, and market offers remain firm. Traders and downstream powder customers report difficulty in restocking APT. Furthermore, some APT enterprises have maintenance plans in the future, intensifying industry concerns about supply. Today, European APT offers increased significantly. Industry personnel feedback indicates tight circulation of European APT, with manufacturers mostly using it in-house. Combined with reduced supply from Vietnam, the market has strong upward momentum. As of today, the European APT quote reached $780/mtu, equivalent to 489,900 yuan/mt. Compared to the steadily rising upstream raw material market, the powder end and cemented carbide performance were stable today. Enterprises mainly ship according to orders, and market offers showed little fluctuation from last Friday, but mostly executed on a case-by-case basis. The industry has potential for catch-up growth. As of today, SMM tungsten carbide powder closed at 750 yuan/kg, and tungsten powder closed at 780 yuan/kg.

Ferrotungsten: The ferrotungsten market faced significant cost pressure, with the transaction center shifting upward. Today, mainstream quotations for 70% ferrotungsten were concentrated at 440,000-448,000 yuan/mt, up 1,000 yuan/mt from the previous trading day and a cumulative increase of 41,500 yuan/mt within the month. The European ferrotungsten center also rose compared to earlier periods. As of today, European ferrotungsten closed at $92-95.5/kg W, equivalent to approximately 457,000-474,400 yuan/metric ton.

Tungsten Scrap: The tungsten scrap market fluctuated rangebound, with prices consolidating at high levels. As traders faced substantial funding pressure, their willingness to sell increased, leading to improved market circulation. Today, SMM tungsten scrap bar closed at 467 yuan/kg, unchanged from the previous trading day but up 24.5 yuan/kg cumulatively over the month.

Short-term, global tungsten resource supply is tight, making market corrections unlikely, and prices are expected to hold up well. Medium and long-term, approaching year-end, the tungsten industry chain has demand for fund repatriation and annual settlement, resulting in reduced market transactions. Coupled with high tungsten prices and significant downstream funding pressure, purchasing enthusiasm declined. A scenario of weak supply and demand may emerge, warranting vigilance as demand enters the off-season, potentially curbing the rise in the tungsten market.