[SMM Tungsten Daily Review: Increased Market Sales, Tungsten Market Enters High-Caution Zone] In the short term, from a macro supply-demand structure perspective, the supply-demand imbalance in tungsten has not undergone significant changes. However, considering the periodic supply-demand dynamics, as the year-end approaches, various segments of the tungsten industry chain face pressure to recover funds and meet increased liquidity needs. Coupled with high price fluctuations in the tungsten market, some suppliers are opting to cash in profits before the holiday, leading to improved trading volume. It is possible that some enterprises may choose to sell at reduced margins, putting pressure on the currently highly strained industry chain. In the short term, with expectations of weakening demand by year-end, the tungsten market has entered a phase of high consolidation and heightened caution. Subsequent attention should be paid to market trading sentiment and changes in the operational status of mainstream enterprises.

SMM News, December 19th：The skyrocketing tungsten prices have exerted disparate impacts on different enterprises across the tungsten industrial chain. Below is a summary of survey findings from upstream mining enterprises, midstream smelters, and downstream cemented carbide & cutting tool manufacturers:

This week, China's APT prices surged 85,000 yuan/ton to 640,000 yuan/ton, driven by supply tightness due to exhausted mining quotas and concentrated maintenance. The European market followed China’s rise on sentiment, but actual trading remained weak due to holiday-driven demand lull and smelting halts. Meanwhile, China’s tungsten powder export prices rose $21/kg, pressuring overseas hard alloy end-users. SMM views the rally as a short-term overheated reaction, with further focus needed on domestic policies and downstream price transmission.

[SMM Tungsten Daily Review: Tungsten Raw Material Market Supply Tightened Sharply at Year-End, Tungsten Market Surged Continuously] This week, the tungsten market continued its surge. Approaching year-end, ore supply dropped sharply, with only some mines in Yunnan and Hunan conducting auctions for shipments this week, while mainstream mines had limited shipments. Spot order transaction prices rose significantly, and trading volume shrank noticeably. Many downstream APT producers underwent maintenance, and with long-term contracts accounting for a large proportion of the industry, spot order transaction prices for APT rose by tens of thousands of yuan amid tight supply.

A severe supply shortage, triggered by concentrated year-end mine maintenance and depleted production quotas, ignited a sharp price rally in China's tungsten market in mid-December. Benchmark prices for wolframite concentrate and APT rose sharply, pulling up downstream powders. Transaction volumes plummeted as the market shifted to discretionary order-by-order deals. While upstream miners with fulfilled annual targets are insulated, downstream manufacturers face intense cost pressure and inventory shortages. Although tight supply supports high prices near-term, weakening seasonal demand from sectors like machinery and photovoltaics may limit further gains.

According to SMM data on Dec 12, European APT CIF (Rotterdam) averaged $850/mtu, up $50 weekly, while ferrotungsten rose to $104.5/kg W. Following China’s price surge, severe material shortages and pre‑Christmas production halts have nearly stalled European trading. Traders expect APT quotes to surpass $1,000/mtu, already accepted by some buyers. In China, depleted mining quotas and output cuts pushed domestic APT to 555,000 yuan/ton. Export controls and lengthy approvals are limiting outbound flows, tightening domestic supply. With Europe’s structural shortage and strong demand unresolved, prices are likely to continue climbing.

On December 5, APT CIF Rotterdam prices reached $780–820/mtu, up $40/mtu week-on-week, while ferrotungsten rose $8.5/kg to $98–99/kg W. European prices continue to be lifted by sustained strength in the Chinese market and robust downstream demand from the hard metal industry. Supply remains tight across the raw material chain, with tradable APT extremely scarce.