SMM April 27: China's tungsten market was hit by a sharp cut in long-term contract prices by a leading enterprise today, triggering concentrated catch-up declines across the entire industry chain. The single-day drop hit a recent high, severely undermining bullish confidence and pushing trading sentiment into a sluggish state.
On April 25, a Guangdong-based tungsten enterprise announced its second-half April raw material long-term contracts (tax-inclusive), with cuts far exceeding market expectations: the execution price for 55% wolframite concentrates was780,000 yuan/standard tonne (65%WO3 basis), down sharply by145,000 yuan/standard tonne (65%WO3 basis)from the first half of the month; 55% scheelite concentrates were cut by 145,000 yuan/standard tonne (65%WO3 basis) in tandem, executed at 779,000 yuan/standard tonne (65%WO3 basis); APT was quoted at1.2 million yuan/mt, down200,000 yuan/mtfrom the first half of the month. This sharp long-term contract cut directly broke through the market's short-term price support, becoming the core trigger for today's concentrated spot catch-up decline. Notably, despite the significant price drop following this long-term contract adjustment,prices remained above current spot order transaction prices. However, spot order trading volume has continued to shrink recently, and long-term contracts carry a relatively high weight in the industry's pricing logic. This sharp Guangdong long-term contract cut essentially pushed the industry's long-term contract price center further downward, reinforcing consensus expectations of continued price declines.
Ore: Today, SMM 65% wolframite concentrates were around 805,500 yuan/standard tonne (65%WO3 basis), down 50,000 yuan/mt from last Friday and cumulatively down 250,000 yuan/mt from the mid-March high, with the year-to-date gain narrowing to around 77.6%. Affected by bearish factors including the long-term contract price decline and weak downstream purchasing enthusiasm, tungsten ore transactions were scarce today. Mines faced sluggish shipments. Some suppliers actively offered quotations, but market bids were limited. Downstream smelters mainly restocked on a just-needed basis, while some traders significantly lowered their purchase prices. Supplier sentiment showed signs of loosening, and market transaction prices remained below online prices and mainstream long-term contract prices.
Smelting market: Today, SMM APT mainstream quotations were concentrated at 1.2-1.3 million yuan/mt, down 80,000 yuan/mt from the previous day. Industry quotations were chaotic with wide price spreads. As a core segment of the industry chain, APT price trends directly reflect market supply-demand pressure. Recently, APT cost support collapsed, market prices loosened, and smelters were forced to follow with price cuts. On the other hand, downstream alloy enterprises faced insufficient orders, with procurement mainly limited to just-needed restocking and lacking bulk purchasing support. Some smelters resorted to selling at low prices to recover funds, a phenomenon that increased and further intensified downward pressure on prices. The ex-China APT market entered a wait-and-see mode. China's APT export margins rebounded, and some suppliers actively quoted to overseas buyers. Of course, exports remained constrained by regulatory and other factors, making significant volume increases unlikely. However, amid widening price spreads and declining prices in the world's major tungsten market, overseas capital and end-user bullish confidence for the outlook loosened, market transactions entered a standstill, some suppliers showed selling sentiment, and prices exhibited slight softening.
Powder market prices generally weakened today. SMM tungsten powder closed at 2,120 yuan/kg, down 40 yuan/kg from the previous day; tungsten carbide powder was quoted at 2,050 yuan/kg, down 40 yuan/kg. Powder enterprises had scarce orders, and some leading cemented carbide alloy enterprises had raw material inventory at high levels with no restocking plans in the short term. Transaction volumes in the industry shrank notably, and industry quotations showed significant catch-up declines. In addition, the price spread between recycled tungsten carbide powder and zinc-melted materials versus primary products remained wide, with the substitution rate of some low and mid-end recycled materials trending higher, thereby exerting considerable impact on the primary powder end.
Scrap tungsten market: The scrap tungsten market saw sharp declines today, with purchasers showing strong wait-and-see sentiment and many suspending purchases. SMM scrap tungsten drill bits closed at 750 yuan/kg, down 60 yuan/kg from the previous day; scrap tungsten bars were quoted at 780 yuan/kg, down 75 yuan/kg; scrap tungsten alloy inserts were quoted at 620 yuan/kg, down 80 yuan/kg. Overall transactions remained sluggish. Dragged down by the sharp decline in primary tungsten finished product prices, recycled tungsten raw material valuations were revised down across the board. Recycled smelting and cemented carbide alloy enterprises generally lowered their purchase quotations. Coupled with the concentrated release of scrap inventory accumulated at earlier high prices, intermediaries showed strong willingness to cut prices on shipments to recover funds. Market circulating supply increased while demand absorption remained weak, and the supply-demand imbalance further amplified the downside room for scrap. Price spreads across all scrap tungsten categories continued to weaken, with in-market transactions dominated by scattered small-lot negotiations lacking bulk transaction support. In the short term, scrap tungsten prices are entirely following the weakness of primary tungsten markets such as APT, with no fundamental support of their own. The in the doldrums trend is expected to continue, and current market transaction prices have already fallen below the average inventory cost of some suppliers.
Ferro-tungsten: The ferro-tungsten market saw sharp follow-on declines today with significant drops. Mainstream quotations for 70% grade fell to 1.18–1.2 million yuan/mt, down 50,000–70,000 yuan/mt WoW. The transaction center shifted downward in tandem, and panic sentiment spread across the market. Downstream steel mills and special steel enterprises showed weak purchase willingness, with end-use demand on the soft side. Most relied on consuming existing inventory, with only scattered rigid-demand small orders following through, while bulk purchasing nearly stalled. Trader sentiment collapsed, with strong willingness to dump at low prices to recover funds. Market circulating supply increased while demand absorption remained weak, negotiation room widened significantly, and actual transaction prices were generally below publicly quoted prices.
In the short term, under multiple pressures from leading long-term contract price cuts, sluggish transactions, and weak end-use demand, the overall tungsten market is clearly in a weak consolidation pattern, and spot prices still have room to soften. However, with strict controls on total tungsten ore mining volume in China and rigid constraints on raw material supply still in place, room for deep declines remains limited. The scrap tungsten market will continue to follow APT and tungsten finished product trends going forward, with little momentum for a short-term reversal. Combined with pre-holiday fund recovery demand, scrap prices may remain in the doldrums. It is recommended that all parties in the industry strictly control inventory levels, exercise caution in dip-buying, prioritize procurement and sales based on immediate demand with quick turnover, and continue to monitor the finalization of mainstream smelting long-term contracts and the pace of downstream production resumption after the holiday.
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