European Tungsten Market Follows China Price Rises, with Downstream Wait-and-See Attitude and Cost Transmission Pressure Coexisting [SMM Analysis]

As of last Friday, SMM data showed that the price of ammonium paratungstate (APT) CIF Rotterdam port was $950-1,050/mtu, with an average price of $1,000/mtu, up by $100/mtu compared to December 18; the price of ferrotungsten (Rotterdam warehouse) was $138-146/kg W, with an average price of $142/kg W, up by $30/kg W compared to December 18.

Last week, overall market transactions were sluggish. An overseas trader stated, "Our current offer is $1,000/mtu, but considering the trend in the Chinese market, we will raise prices again next week." Additionally, it was learned from suppliers that the current CIF Rotterdam offer for tungsten concentrate has risen to $865-870/mtu. After Christmas, offers for the small amount of APT circulating in the market remained firm, with no prices below $920/mtu available.

On the buyer side, European customers generally found the current price increases difficult to accept and mostly adopted a wait-and-see attitude. However, some cemented carbide end-users, due to production needs, have gradually begun accepting offers for tungsten powder, tungsten carbide, and tungsten materials from China.

In the tungsten scrap market, India recently exported large quantities of cemented carbide scrap to Europe and the United States. According to an SMM survey, as of last Friday, the FOB price for Indian tungsten scrap (80% tungsten content, mainly consisting of cutting tools, molds, etc.) was 7,800 Indian rupees/kg (approximately $86.5/kg), with prices also rising in tandem with tungsten prices.

In the Chinese market, the strong market sentiment continued last week. Mine supply continued to tighten, while rigid demand support remained, leading to strong bullish sentiment. The pattern of undersupply persisted, driving Chinese tungsten prices higher and subsequently pulling up global market prices. Looking at future trends, European market prices need to consistently follow or even exceed Chinese prices to maintain competitiveness in raw material procurement.