SMM Report, June 5: Benchmark monthly long-term contract prices for China’s tungsten sector were officially released recently. The Ganzhou Tungsten Association unveiled its June 2026 domestic tungsten forecast prices: 55% WO₃ black tungsten concentrate at RMB 505,000 per metric ton, down RMB 195,000/MT month-on-month; ammonium paratungstate (APT) priced at RMB 760,000 per metric ton, a MoM drop of RMB 260,000/MT;

[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.

In May, European APT prices held firm above $3,000/mtu amid tight supply, while scrap tungsten dropped sharply. China's tungsten prices rebounded late in the month as sentiment improved, though downstream demand remained soft. A cautious bottoming trend emerged.

[Tungsten News Flash] SMM June 1: At the start of the week, the tungsten market mainly fluctuated upward. Upstream suppliers were bullish with firm offers. Downstream powder and cemented carbide plants actively inquired for restocking, and market transactions were active. Mainstream downstream enterprises actively picked up goods under long-term contract supply. In addition, enterprises supplemented with spot order procurement, and overall procurement volume increased notably. SMM 65% wolframite concentrates closed at 434,500 yuan/standard tonne (65%WO3 basis) today, up 8,000 yuan/standard tonne (65%WO3 basis) WoW Friday, with some transactions based on premiums over the online price. SMM APT closed at 685,000 yuan/mt today, with smelters mostly adopting a wait-and-see approach and suspending offers.

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:

The average price of wolframite concentrates on May 26 was 400,500 yuan/standard tonne (65%WO3 basis), showing signs of stabilization after a nearly 62% decline over more than two months. Currently, downstream procurement demand in the tungsten market increased. Transactions across the entire tungsten industry chain — from tungsten concentrates, APT, and powder to tungsten scrap — recovered. Low-priced supplies in the market gradually diminished, and the industry as a whole showed signs of stopping falling and stabilizing. Wolframite Concentrates Fell 61.88% over 2+ Months, Prices Stabilized on the 26th The downward pace of tungsten concentrate prices slowed, with in-market transactions dominated by medium- and low-grade ore, while high-grade ore transactions remained relatively sluggish. As industry inventory continued to be cleared, downstream restocking demand picked up, mine auction transactions proceeded smoothly, and transaction prices were slightly higher than spot prices for scattered spot cargo in the market, effectively boosting market sentiment. On the 25th, a tungsten enterprise in Guangdong announced that its long-term contract prices for 55% wolframite concentrates for the second half of May were higher than spot order prices in the market, providing strong support for the market bottom and further consolidating the industry's trend of stopping falling. The specific long-term contract prices were: 55% wolframite concentrates at 414,000 yuan/standard tonne (65%WO3 basis), 55% scheelite concentrates at 413,000 yuan/standard tonne (65%WO3 basis), and APT long-term contract prices at 660,000 yuan/mt. After tungsten prices hit a record high on March 16, they were on an overall pullback trend due to weak demand, and tungsten prices underwent a deep correction over more than two months. According to SMM quotes, on May 26, the quotation range for wolframite concentrates (≥65%) was 400,000–401,000 yuan/standard tonne (65%WO3 basis), with an average price of 400,500 yuan/standard tonne (65%WO3 basis), unchanged from the previous trading day. Compared with the record high of 1,050,500 yuan/standard tonne (65%WO3 basis) on March 16, the average price of wolframite concentrates fell by 650,000 yuan/standard tonne (65%WO3 basis) in just over two months, a staggering decline of 61.88%! Since May, maintenance and production cuts by China's APT enterprises, along with measures to cut production to hold prices firm, effectively digested earlier inventory. As raw material prices gradually stabilized, smelters' willingness to hold prices firm strengthened, downstream just-in-time procurement gradually followed, and market trading activity rebounded slightly. Combined with the support formed by major producers' long-term contract pricing being finalized, APT prices stopped falling, and the market gradually entered a consolidation-at-lows phase. The tungsten powder market continued to see catch-up declines, though the pace of decline slowed down. Recently, the tungsten scrap market stopped falling and stabilized, recycled tungsten enterprises showed insufficient willingness to sell at low prices, and tungsten scrap transactions improved somewhat. Outlook Regarding the outlook for tungsten, overall, driven by orderly inventory destocking, the return of downstream just-in-time procurement, and the formation of pricing consensus among industry leaders, the tungsten market as a whole entered a bottoming-out and recovery phase. Going forward, close attention should be paid to the execution of long-term contracts and the pace of end-use demand recovery. According to an SMM survey, downstream cemented carbide alloy enterprises have seen their inventory drop to low levels, with expectations of rigid restocking demand. However, 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" consumption boom, the industrial supply-demand structure will continue to optimize, thereby providing bullish support for tungsten prices. Recommended reading:

[SMM Tungsten Daily Review: Transaction Center of Tungsten Raw Materials Rebounded Slightly, End-Use Demand Still Requires Attention Going Forward] SMM May 27: Today, the tungsten market saw moderate trading activity, with increased market inquiries. The transaction center for upstream ore and APT spot orders shifted upward, and market transaction prices gradually converged toward mainstream long-term contract prices in the industry. Some APT enterprises chose to seal their offers and hold back from selling, actively tightening market circulation. The overall market exhibited a slight rebound, but attention still needs to be paid to industry inventory clearing conditions going forward.

[SMM Tungsten Daily Review: Guangdong Tungsten Enterprise Announces Long-Term Contract Prices, Tungsten Market's Stop Falling and Stabilize Trend Confirmed] SMM May 25: Today, tungsten market sentiment eased, downstream purchasing activity increased, and transactions in APT, powder, and other segments recovered. A tungsten mine in Hunan auctioned tungsten concentrates with a grade of approximately 12-21%, moisture content of approximately 12%, an estimated 430 mt in physical content, or about 100 standard tonnes (65%WO3 basis). The auction was successfully concluded, with transaction prices concentrated at over 370,000-380,000 yuan/standard tonne (65%WO3 basis). The decline in spot order transaction prices for tungsten concentrates slowed down significantly, and the ore side essentially consolidated at lows.

SMM News, May 21： Since mid-March, China's tungsten market has ended a year-long sharp rally and entered a high-level correction phase with prices trending steadily lower. Market sentiment has shifted from exuberance to caution, with periodic supply-demand adjustments and fading market mood becoming core drivers of price movements.

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."