APT Stabilizes Above 500,000 yuan/mt, Cemented Carbide Product Prices Raised [SMM Tungsten Daily Review]

SMM December 2

In early December, major domestic tungsten enterprises raised their long-term contract prices for the first half of December. Stimulated by factors including a supply-demand mismatch in the tungsten raw material market and tightening circulation, the domestic tungsten market maintained an upward trend over the past two days. Today, the bargaining center for ore shifted upwards. A tungsten enterprise in Xiamen raised its APT long-term contract purchase price for the first half of December by 30,000 yuan/mt MoM, implementing a price of 500,000 yuan/mt. With bullish sentiment, enterprises held back from selling, and spot order transaction prices primarily moved higher. Downstream hard alloy enterprises mostly negotiated prices order by order. New orders faced inversion risks due to excessively rapid and large fluctuations on the cost side. Consequently, enterprises had to base their quotes primarily on raw material costs, adopting an order-by-order negotiation model, resulting in significant price differences across the industry. Multiple segments showed a state of shrinking volume with quoted prices but thin trading.

Ore Side: As of December 2, SMM black tungsten concentrate (65%) closed at 342,000-343,000 yuan/metric ton unit, up 5,000 yuan/metric ton unit from the previous trading day, with a year-to-date increase of approximately 140%. Mainstream mines primarily executed shipments under long-term contracts, with limited spot order trading volume. Additionally, some enterprises indicated that recent spot transactions for imported ore were scarce. Tungsten ore imports from Myanmar and North Korea decreased compared to the previous period, and shipments from domestic mainstream mines were low, exacerbating the tight supply situation in the market. Approaching year-end, mainstream mines focused primarily on capital repatriation, resulting in fewer shipments. Shipments within the month are expected to decrease MoM.

Ammonium Paratungstate (APT): Today, SMM ammonium paratungstate (≥88.5%) was quoted at 500,000-505,000 yuan/mt, up 5,000 yuan/mt from the previous trading day, with a cumulative year-to-date increase of approximately 139%. In early December, an enterprise in Fujian raised its long-term contract price to 500,000 yuan/mt. Driven by this and favorable factors such as tight APT supply and strong demand-side drivers, APT prices rose rapidly. According to SMM data, domestic APT production in November 2025 increased by 1.5% MoM but decreased by approximately 6% YoY. In December, downstream tungsten products like APT still face expectations of difficulty procuring raw materials. Coupled with year-end maintenance plans at some enterprises, tight supply in the domestic APT market is expected to intensify within the month. The overseas APT market primarily saw shrinking transactions, with restocking difficulties. Quotations in some regions were mostly anchored to the Chinese market, with European APT offers rising to around $800/mt. Powder end quotes were chaotic today, with many enterprises holding back from selling. Spot transactions for tungsten carbide powder mostly occurred above 780 yuan/kg, and tungsten powder transactions were around 810 yuan/kg. However, by the afternoon, quotes from many enterprises had reached as high as 840 yuan/kg. Market volatility was significant, downstream wait-and-see sentiment was strong, and operating rates in the hard alloy industry primarily declined. Tungsten rod and bar/rod enterprises mostly raised prices, but overall trading volume was limited.

Ferrotungsten: With limited trading volume in steel tenders and significant cost pressure, steel mills were forced to switch to tungsten scrap as a substitute, leading to a substantial decline in both trading volume and production in the ferrotungsten market. Today, mainstream quotations for 70% ferrotungsten were concentrated at 460,000-470,000 yuan/mt, up 15,000 yuan/mt from the previous trading day. FOB quotations were at $94/kg W, and the price center for European ferrotungsten offers had risen to $95-98/kg W.

Tungsten Scrap: High costs of primary raw materials such as tungsten ore stimulated improved trading in the tungsten scrap market. However, with low industry inventory, suppliers showed clear intentions to hold prices firm, and transaction prices for tungsten scrap mainly increased. Today, SMM tungsten scrap bar closed at 471 yuan/kg, accumulating an increase of about 95% year-to-date.

Short term, the domestic tungsten ore market faces multiple supply disruptions, including reduced available mining quotas, declining shipments from tungsten mines toward year-end, and unstable imports. Overseas, reductions from Vietnamese mines, no short-term new mine increments, and the EU and US listing tungsten as a strategic metal, along with demand growth, highlight a prominent supply-demand imbalance in the global tungsten market. Short-term resolution is difficult, and tungsten prices are expected to hold up well. Focus on the long-term contract price guidance from domestic mainstream enterprises and institutions on December 5. Medium and long-term, attention should still be paid to domestic tungsten mining policy trends and downstream price transmission.