Latest Update in the SMM Tungsten Market

SMM News, January 22th： In general, the constraints on domestic tungsten ore resource exploitation will inevitably lead to increased overseas exploitation and utilization of tungsten ore resources. Meanwhile, China's tungsten product import and export market will focus on the core logic of "stable resource imports for security and high-end exports for building barriers", seek dynamic balance amid great-power games and industrial chain restructuring, strengthen high-end technical barriers, and gradually build an industrial system with stronger internal and external coordination and risk resistance capabilities.

[SMM Tungsten Daily Review: Long-term contract prices for the second half of January raised significantly; tungsten market maintains jump trend] Short term, before Chinese New Year, domestic mine production declines due to safety controls and environmental protection-related controls, market tungsten ore circulation remains tight, while downstream cemented carbide and end-user manufacturing are in seasonal restocking cycle, supply-demand mismatch, tungsten supply-demand imbalance prominent, short term mainly hold up well, but also need to be alert, pre-holiday capital risk aversion, some suppliers' profit-taking demand increases, bringing phased under pressure issues. Medium and long term, global tungsten mine new capacity is limited, global geopolitics promotes strategic layout of key minerals, countries' competition for tungsten resources intensifies, supply chain security concerns rise, further strengthening supply-demand tight balance pattern. Tungsten market supply-demand gap will continue to widen, supporting tungsten prices to hover at highs, price center gradually lifts, industry will develop toward resource end concentration, deep processing technology upgrade direction.

European APT prices rose to $1,025/mtu, yet trade remains thin, creating a "stalled market" scenario despite high Chinese-led global quotes. Simultaneously, scrap tungsten prices are surging globally, signaling a potential shift toward scrap as a primary cost driver due to persistent ore shortages, further squeezing downstream margins.

SMM News, January 16th： This week, China's tungsten market maintained a strong upward trend. The tight supply situation at the mine end became more prominent, driving the steady rise in upstream raw material prices in the industrial chain.

As of last Friday, the European ammonium paratungstate CIF price had risen to $1,000/mtu, and the average ferrotungsten price reached $142/kg W, increasing by $100/mtu and $30/kg W, respectively, within a week. This round of price rises was primarily driven by tight supply and soaring prices in the Chinese market. Currently, the European market is characterized by rising prices but sluggish actual transactions: downstream customers generally adopted a wait-and-see approach, though some hard alloy end-users have started to accept high prices due to rigid production demands; the scrap tungsten market prices have also risen in sync. Analysis suggests that the European market needs to maintain price increases in line with or even at a premium to China's to remain competitive in procurement amid the tight raw material supply landscape.

[SMM Molybdenum Daily Review: Post-Holiday Ore Rebound, Ferromolybdenum Tender Center Moves Up] SMM January 5: After the holiday, the domestic molybdenum market rebounded rapidly, with the transaction price center for molybdenum concentrate rising significantly. Driven by strong cost pressures, ferromolybdenum enterprises held back sales and maintained firm quotations. Steel mills faced difficulties in negotiating tender prices, and actual transaction prices moved upward. On January 4, a steel mill in Guangdong issued a tender price of 255,000 yuan/mt, while mainstream market quotations were concentrated in the range of 255,000–258,000 yuan/mt. Downstream steel mills exhibited strong wait-and-see sentiment, and their purchasing activity slowed down.

[SMM Tungsten Daily Review: Tungsten Market Stabilizes Post-Holiday, Scrap Tungsten Market Leads the Rise] In the short term, following suppliers' profit-taking before the holiday, restocking demand has emerged in the post-holiday market. Some suppliers have restocked at the bottom, driving a short-term improvement in trading volume. However, with prices at elevated levels, the market largely awaits guidance from long-term contracts. In the quarter, mines are expected to steadily supply ore, while downstream products such as powders still require follow-up quantified firm orders. In the absence of strong market drivers, prices are anticipated to fluctuate rangebound in the short term.