SMM May 7: Weak downstream demand continued to weigh on tungsten prices. The average price of wolframite concentrates (≥65%) on May 7 was reported at 700,500 yuan/standard tonne (65%WO3 basis). In less than two months, the price has pulled back over 33% from its historical high. As multiple tungsten enterprises continued to lower their long-term contract prices for the first half of May, extending the two rounds of cuts in April, how will tungsten prices evolve going forward? Multiple Tungsten Enterprises Continue to Lower Long-Term Contract Prices for First Half of May Multiple tungsten enterprises continued to lower their long-term contract prices for the first half of May, details as follows: A tungsten group in Jiangxi released its long-term contract prices for the first half of May. The guidance price for national standard Grade 1 wolframite concentrates for the first half of May 2026 was 720,000 yuan/standard tonne (65%WO3 basis) (long-term contract), down 190,000 yuan/standard tonne (65%WO3 basis) from the second half of April. Chongyi Zhangyuan Tungsten's long-term contract procurement prices for the first half of May were: 1 55% wolframite concentrates: 700,000 yuan/standard tonne (65%WO3 basis), down 185,000 yuan/standard tonne (65%WO3 basis) from the previous round; 2 55% scheelite concentrates: 699,000 yuan/standard tonne (65%WO3 basis), down 185,000 yuan/standard tonne (65%WO3 basis) from the previous round; 3 APT (national standard Grade 0): 1.02 million yuan/mt, down 330,000 yuan/mt from the previous round. Wolframite Concentrates Fell 33.32% in Less Than 2 Months According to SMM, the price spread between tungsten ore long-term contract prices and spot order transaction prices widened to around 200,000. Mainstream mines primarily shipped under long-term contracts, while spot orders in the market still faced some selling pressure with difficult transactions and a continuously declining center. However, considering the limited spot order trading volume and the high proportion of long-term contracts in the market, SMM maintained the May 7 price unchanged for now. According to SMM quotes, the price of wolframite concentrates (≥65%) on that day was 700,000–701,000 yuan/standard tonne (65%WO3 basis), with an average price of 700,500 yuan/standard tonne (65%WO3 basis), flat from the previous trading day. Along with the declining center of tungsten prices, the average price of wolframite concentrates (≥65%) at 700,500 yuan/standard tonne (65%WO3 basis) on May 7, compared with its historical high average price of 1,050,500 yuan/standard tonne (65%WO3 basis) on March 16, showed that in less than 2 months, the average price of wolframite concentrates fell by 350,000 yuan/standard tonne (65%WO3 basis), a decline of 33.32%. Outlook As China's mainstream tungsten enterprises continued to lower their new round of long-term contract prices, spot market confidence remained under pressure. It is expected that tungsten prices will remain in the doldrums in the short term given the lack of demand support. In the long term, underpinned by the supply rigidity from the continued tightening of China's annual tungsten ore mining quotas, the logic of raw material supply contraction remains unchanged. After tungsten prices pulled back over 33% in less than two months, the room for further deep declines has been significantly compressed. Going forward, the key focus will be on the pace of recovery in actual end-user demand from downstream sectors such as cemented carbide, special steel, and PV tungsten wire, as well as the timing of concentrated restocking by enterprises in the low-price segment. Recommended reading:

[SMM Tungsten Express] SMM May 7: APT CIF Rotterdam prices remained stable at $2,900-3,200/mtu this week, flat WoW. However, market pessimism was strong in the European market this week, with end-users mostly adopting a wait-and-see attitude. Despite no change in the tight supply landscape, there was virtually no substantial trading in the market this week, and buyers and sellers were in a stalemate. In the Indian market, FOB prices for scrap tungsten drill bits were quoted at $100-120/kg, with an average price of $110/kg, down $30 WoW. Market demand was weak, and panic sentiment among scrap dealers intensified, accelerating the price decline.

[SMM Tungsten Daily Review: Tungsten Market Trading Sluggish, Awaiting Tomorrow's Long-Term Contract to Set the Tone] SMM May 6 News: On the first day after the holiday, China's tungsten market continued its weak consolidation trend. The upstream raw material market was waiting for tomorrow's long-term contract guidance price, with very few transactions in the market. Downstream powder and cemented carbide intermediate products showed a catch-up decline. Wait-and-see sentiment pervaded the market, with transactions across all segments dominated by scattered small orders for rigid demand, lacking support from bulk transactions.

[SMM Tungsten Daily Review: Pessimistic Sentiment Released in Concentration, Tungsten Products Fell across the Entire Industry Chain Today] SMM April 27: China's tungsten market today was hit by the sharp downward adjustment of long-term contracts by leading enterprises, and prices across the entire industry chain fell collectively to catch up with earlier declines. The single-day drop hit a recent high, market bullish confidence was severely undermined, and the trading atmosphere turned sluggish.

As of April 24, SMM APT CIF Rotterdam averaged $3,050/mtu, down $135 WoW; Ferro-tungsten averaged $300/kg W, down $20 WoW. Trading remained thin as buyers and sellers stayed on the sidelines amid heightened wait-and-see sentiment.

[SMM Tungsten Express] Driven by soaring tungsten prices and rising defense budgets, Vietnam's Masan High-Tech Materials is stepping up its search for strategic investors for its Nui Phao tungsten mine, one of the world's largest and most significant non-China tungsten sources. The company also plans to list on the Ho Chi Minh Stock Exchange in 2027, prioritizing debt reduction to achieve a "clean" balance sheet by 2027-2028. Its customers include Honeywell and Mitsubishi, with 2026 profit projected at 1.7-2.5 trillion Vietnamese dong.