[SMM Tungsten Daily Review: Improved Trading Lifts Tungsten Market Volume and Prices, End-Use Demand Follow-Through Remains Key Focus for the Outlook] SMM June 3 report: The tungsten market posted steady gains this week, with related products across the industry chain rising across the board. Tungsten ore and APT markets recorded six consecutive days of increases. New orders from downstream powder enterprises began to gradually improve. Supported by increased trading volume and rising costs, powder enterprises successively raised their quoted prices. Downstream and end-user enterprises shifted from sporadic rigid-demand purchases to bulk purchasing, bullish sentiment grew increasingly strong, and price gains were concentrated in upstream raw materials and the APT segment, while deep-processed products passively rose following costs.

SMM May 28 update: The minor metal sector strengthened on May 28. As of the close on May 28, the minor metal sector rose 3.44%. In terms of individual stocks: Sino-Platinum Metals, Yunnan Germanium Industry, and China Molybdenum hit the daily limit, while China Minmetals Rare Earth, China Tungsten And Hightech, China Northern Rare Earth, and China Rare Earth led the gains. On the news front: According to authoritative local media in Zimbabwe and Xinhua News Agency, the Zimbabwean government recently issued the Mineral Classification and Declaration, explicitly listing lithium and other high-value minerals as "critical minerals" subject to equity and export controls. The critical minerals involved include 14 types: lithium, nickel, cobalt, graphite, copper, rare earth elements, chromium, platinum group metals (PGMs), manganese, antimony, uranium, ruthenium, tungsten, and niobium. The market is focused on the impact of tightening resource-country policies on global supply chains, with sentiment warming for minor metal varieties such as antimony and tungsten. Spot market Tungsten According to SMM pricing, on May 28, the average price of wolframite concentrates (≥65%) was 415,500 yuan/standard tonne (65%WO3 basis), up 1.22% from the previous trading day. Notably, after wolframite concentrates previously experienced a 61.88% decline over more than two months, driven by increased purchasing demand in the tungsten market, tungsten prices saw a rebound over two trading days. Currently, transactions in the tungsten concentrates market have improved, suppliers are bullish and hold back from selling, high-grade ore sees an upward shift in transaction center, while medium and low-grade ore circulates more but price increases appear lackluster. Downstream APT industry operating rates have slightly improved, but with limited new orders in the industry, smelters are cautious in restocking, with only small volumes of spot orders and large orders transacted in the market. Regarding the tungsten outlook, in the short term, driven by orderly inventory destocking, the return of downstream rigid demand, and the formation of pricing consensus among industry leaders, the tungsten market has overall entered a consolidation-at-lows and recovery phase. Going forward, key attention should be paid to the execution of long-term contracts and the pace of end-use demand recovery. According to SMM surveys, downstream cemented carbide alloy enterprises have seen inventory drop to low levels, with expectations of rigid restocking demand, but influenced by the market not yet being fully stabilized, enterprises remain cautious in procurement, generally adopting a small-order purchasing model. If upstream raw material inventory continues to be cleared and supply-demand imbalances are alleviated, tungsten prices are expected to enter a stabilization and consolidation phase in June-July. In the medium and long-term, the gap in Q3 mining quota transitions may lead to a contraction in market supply, coupled with expectations of the traditional September-October peak season, the industrial supply-demand structure will continue to optimize, thereby providing bullish support for tungsten prices. Rare Earths After the rally on May 27, the average price of Pr-Nd oxide on May 28 fell 1.79% from the previous trading day, and inquiries in the rare earth oxide market were sluggish on the 28th. Affected by futures price fluctuations combined with periodic restocking by some major producers, Pr-Nd oxide prices fluctuated frequently this week. Upstream and downstream players continued their stalemate, with suppliers maintaining relatively firm offers overall, while downstream metal producers maintained a strong wait-and-see sentiment and showed low purchase willingness at high prices. Absent other news-driven factors, Pr-Nd oxide is expected to remain in the doldrums in the short term before any significant change in the supply-demand relationship. Institutional Views Huafu Securities noted in its research report dated May 24, when commenting on other minor metals: rare earths performed weakly, while tantalum pentoxide surged during the week. In the rare earth market, end-use demand from downstream magnetic material sectors remained weak, with no large-scale concentrated restocking observed — only sporadic rigid-demand small orders were transacted, and the demand side consistently failed to provide effective support for the market. Market sentiment fluctuated significantly, with frequent tug-of-war between longs and shorts. Overall industry confidence was insufficient, with a notable stalemate between upstream and downstream on offer and bid prices, and significant divergence within the industry regarding the outlook for subsequent market trends. On Friday, the market maintained a wait-and-see attitude, awaiting changes in the magnetic material restocking pace and a recovery in downstream demand. Individual stocks: for antimony, Hunan Gold, Huaxi Nonferrous, and Huayu Mining are recommended; for molybdenum, China Moly, China Gold, and CMOC; for tungsten, Jiaxin International Resources, China Tungsten High-Tech, Xiamen Tungsten, and Zhangyuan Tungsten; for rare earths, China Rare Earth, China Northern Rare Earth, JL MAG Rare-Earth, and Xiamen Tungsten. Kaiyuan Securities' mid-year 2026 investment strategy for the metals sector indicated: Copper: Supply side, most ex-China miners continued to face declining ore grades and recovery rates, with disruption factors persisting (Ivanhoe's Kamoa-Kakula copper mine, Codelco's El Teniente copper mine). Although China's domestic enterprises added incremental capacity, the overall increase was limited. Under optimistic assumptions, global supply growth from 2026 to 2027 may fall below 2%. Demand side, power demand in both China and the U.S. maintained high growth rates in H1, which is expected to contribute marginal incremental copper demand. Kaiyuan Securities believes that the supply-demand structural imbalance for copper will become more pronounced in 2026, supporting a rise in the copper price center. Lithium: Supply side, capital expenditure in the lithium industry contracted and supply discipline gradually took shape. Combined with frequent disruptions, supply elasticity in the lithium industry has declined notably compared to before. Meanwhile, energy storage demand sustained high prosperity, driving gradual improvement in the lithium demand structure and marginal easing of inventory pressure. Lithium prices are expected to see a phased recovery. Lithium enterprises with resource security, low-cost advantages, and integrated layouts are expected to see earnings recovery elasticity outperforming the industry average. Lithium mine and lithium chemicals companies with high resource self-sufficiency rates and strong cost control capabilities are worth watching. Tungsten: As a strategic metal where China holds a dominant position, tungsten ore supply is constrained by resource depletion, environmental protection, and other factors. Combined with the government's total volume control on tungsten ore mining, tungsten ore production release remains limited. Demand side, emerging sectors are boosting tungsten demand, which is expected to provide long-term support for tungsten prices. According to a CITIC Securities research report, the current metals sector valuation remains at a reasonable level, with aluminum, copper, nickel-cobalt-tin-antimony, and gold valuations at relatively low levels, and a valuation rebound is still anticipated. Sector dividends have pulled back slightly, but the projected dividend yields of some individual stocks still exceed 5%. Looking ahead to 2026, liquidity shocks are expected to ease, supply disruptions are expected to occur frequently, and certain downstream sectors are expected to sustain relatively high prosperity. It is recommended to maintain a focus on allocation opportunities in lithium, copper, rare earths, strategic metals, aluminum, and gold sectors. Recommended Reading:

Persistent weakness in downstream demand dragged the tungsten market lower. As of May 19, the average price of wolframite concentrates (≥65%) was quoted at 445,500 yuan/standard tonne (65%WO3 basis). The current price has not only completely erased all gains accumulated within the year but also pulled back from the year-end 2025 price. Moreover, in just over two months, the average price has fallen 57.59% from its intra-year historical high. End-users have adopted a cautious purchasing stance, with weak demand transmitting upstream level by level, continuously exerting significant downward pressure on raw material prices. Under such circumstances, how will tungsten prices perform going forward? Wolframite Concentrates Continue to Decline, with All Intra-Year Gains Fully Retraced According to SMM quotations, on May 19, the quotation range for wolframite concentrates (≥65%) was 445,000–446,000 yuan/standard tonne (65%WO3 basis), with a market average price of 445,500 yuan/standard tonne (65%WO3 basis), down 3.26% from the previous trading day. In a horizontal comparison, the current average price pulled back 8,000 yuan/standard tonne (65%WO3 basis) from the average of 453,500 yuan/standard tonne (65%WO3 basis) on December 31, 2025, with all previously accumulated gains within the year fully retraced. Looking at the intra-year price trend, the current price has significantly departed from its highs. Compared to the intra-year historical average high of 1,050,500 yuan/standard tonne (65%WO3 basis) recorded on March 16 this year, the average price of wolframite concentrates has cumulatively plunged 605,000 yuan/standard tonne (65%WO3 basis) in just over two months, a cumulative decline of 57.59%, representing a highly significant pullback. Outlook Overall, there are currently no substantive positive factors underpinning the market. Downstream mainstream consumers such as cemented carbide and machining enterprises have adopted a conservative purchasing mindset, generally adhering to a strategy of "purchasing as needed and strictly controlling inventory," with overall end-use demand remaining persistently weak. Sluggish demand has directly dragged down upstream smelting-stage demand for products such as APT and tungsten powder, with operational pressure transmitting upstream level by level, continuously suppressing tungsten concentrates raw material prices. Even if mining controls remain stringent going forward and the commissioning progress of low-grade tungsten mines falls short of market expectations, the support from the supply side remains limited and is unlikely to offset the downward pressure brought by weak end-use demand. In the short term, the market lacks sufficient momentum to support a strong price rebound. Tungsten product prices are expected to move sideways amid the interplay between weak demand and low raw material costs. Close attention should be paid to subsequent long-term contract pricing by major tungsten enterprises for guidance on tungsten prices. From a medium and long-term perspective, China's primary tungsten ore mining scale and production are still expected to continue their YoY declining trend. However, during the previous tungsten price surge cycle, the terminal tungsten consumption structure underwent deep optimization, with tungsten consumption in low-value-added sectors gradually being cleared; coupled with the cemented carbide industry's continuous quality upgrades, extended tool service life, and accelerated transition toward high-end products, multiple factors have resulted in China's actual tungsten consumption volume falling short of earlier market expectations. Against this backdrop, the tungsten industry's supply-demand pattern has undergone a fundamental shift—from the previous logic of price increases driven by mine-side supply contraction, it has officially transitioned to a new pattern of "demand-led, structure-priced, cost-supported, and expectations-driven."

[SMM Tungsten Daily Review: Tungsten Market in the Doldrums Consolidating at Lows, Scrap Tungsten Stabilized, Industry Policies Providing a Floor] SMM May 12: Recently, the tungsten market retreated from highs and continued to be in the doldrums. The price spread between upstream raw material long-term contracts and spot cargo spot orders continued to widen. Long-term contract quotes were repeatedly lowered, but the decline remained smaller than spot market spot order transaction prices. Wait-and-see sentiment was strong in the market, with very few transactions. On May 11, an enterprise in Guangdong canceled its fixed long-term contract pricing for the first half of May and switched to market-based negotiated pricing, shifting pricing power closer to the spot market. This intensified wait-and-see sentiment in the short term while also making raw material pricing more flexible. After a deep decline in the earlier period, scrap tungsten stopped falling and stabilized, rebounding slightly. Suppliers held back from selling at low prices, providing some support to the market.

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), having pulled back more than 33% from its historical high in less than two months. As multiple tungsten enterprises continued to lower their long-term contract prices for the first half of May, extending the two rounds of reductions in April, how will tungsten prices evolve going forward? Multiple Tungsten Enterprises Continue to Lower Long-term Contract Prices for the First Half of May Multiple tungsten enterprises continued to lower their long-term contract prices for the first half of May, with details as follows: A tungsten industry 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, with mainstream mines primarily making shipments under long-term contracts. Spot orders in the market still faced some selling pressure, with transactions remaining difficult and the center continuously shifting downward. However, considering the limited spot order trading volume and the relatively high proportion of long-term contracts in the market, SMM maintained its May 7 prices unchanged for the time being. 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 downward shift in the tungsten price center, 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 continue to lower their new round of long-term contract prices, confidence in the spot market will remain under pressure. Tungsten prices are expected to 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 more than 33% in less than two months, the room for further deep declines has been significantly compressed. Going forward, key attention should be paid to the pace of actual demand recovery in downstream end-user 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 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.

[Tungsten News Flash] SMM, April 14: It was reported that Guangdong Province issued the first batch of tungsten mine extraction control quotas for 2026: the provincial total was 2,110 standard tonnes (65% WO₃ basis), a decrease of 250 mt from the first batch in 2025 (2,350 mt), a YoY decline of 10.2%.

Since March, the domestic tungsten market has trended higher and then pulled back. Driven by rigid supply and macro sentiment at the beginning of March, prices rose rapidly, with 65% wolframite concentrate hitting a record high of 105,000 yuan per standard ton. Starting from mid-March, profit-taking by investors, downstream resistance to high prices, and a general correction in commodity markets led to a gradual price pullback, pushing the entire market into a phase of supply-demand game.

[Tungsten Industry Long-term Contract Information] SMM April 10: A tungsten enterprise in Guangdong released its long-term contract prices for the first half of April. Specifically, 55% wolframite concentrates were priced at 925,000 yuan/standard tonne (65%WO3 basis), 55% scheelite concentrates at 924,000 yuan/standard tonne (65%WO3 basis), with tungsten ore concentrate long-term contract prices down 80,000 yuan/standard tonne (65%WO3 basis) from the second half of March. APT was priced at 1.4 million yuan/mt, down 80,000 yuan/mt from the second half of March (Note: All prices above are inclusive of 13% VAT).