Ore-side Transactions Steadily Improve, APT Market Still Needs Demand Stimulus [SMM Tungsten Daily Review]

SMM, August 12:

Today, the tungsten concentrate market saw stable transactions. SMM 65% black tungsten concentrate held at 416,500 yuan per standard tonne (65%WO3 basis). The price spread between spot and long-term contracts narrowed significantly. As of today, spot transaction prices for 55% tungsten concentrates were basically close to the long-term contract price of 412,000 yuan per standard tonne, while spot transactions for 65% concentrates were mostly in the 415,000–418,000 yuan per standard tonne range. It was difficult to push for lower prices as suppliers held firm on their offers. High-grade ores were scarce in circulation, and the wide price spread between high and low grades remained volatile.

APT market: The APT market remained largely stable today. Supported by cost-side factors and the high cost pressure from inventory held earlier by smelters, there were few low-priced goods in the market. Spot transaction negotiations centered around 600,000 yuan/mt. Downstream powder enterprises mostly restocked on demand, and market liquidity was moderate. As of now, domestic tungsten end-users, such as hard alloy and tungsten material processing enterprises, were still in an off-season, with few new orders in the industry. Transaction prices for some tungsten materials and hard alloys eased. Today, SMM prices for products such as tungsten bars and rods were generally lowered by 50 yuan/kg from the previous day. In addition, the tungsten market experienced wild swings in H1, and some end-users still had high-priced raw materials to digest. Industry procurement strategies leaned toward need-based purchasing, with little willingness to stockpile proactively. Large-scale concentrated procurement had not yet emerged. In terms of market sentiment, market funds focused on progress in the implementation of domestic mine safety policies and supply disruptions overseas due to US export controls on tungsten shredded scrap. Policy expectations provided some support to sentiment, but actual demand had yet to materialize, leaving the market lacking upward momentum. In the short term, the tungsten APT market is expected to maintain sideways movement. Going forward, the focus will be on tracking changes in tungsten concentrate supply, the recovery of downstream hard alloy orders, and the actual implementation of relevant policies in China and overseas.

European market summary: This week, European APT market offers were stable at $2,900–3,250/mtu. Overall trading remained sluggish as seen during the summer break, with few new orders concluded and prices showing no fluctuations. Market attention shifted to the recently introduced US ban on tungsten scrap exports, but so far this policy has had no substantive impact on raw material supply or spot trade. The actual control intensity and implementation in the second half of the month will need to be monitored. In the short term, the European market is expected to remain calm, awaiting a recovery in demand after the summer break and further clarity on the policy.