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:

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Indonesian state-owned tin producer PT Timah achieved refined tin production of 5,630 mt in Q1 2026, a significant increase of 81.9% YoY. During the same period, PT Timah's refined tin sales volume was 6,009 mt at an average price of $49,221/mt, generating revenue of 5.47 trillion Indonesian rupiah (approximately 2.291 billion yuan), up 160.5% YoY. According to the company's report, tin-in-ore production from its onshore and offshore operations reached 6,312 mt in Q1, up 96.3% YoY. The company attributed this growth to improved production efficiency, an increased number of operating vessels within permitted areas, and higher production from cooperative onshore mines (including small-scale mines and onshore suction dredge pontoon operations). Improved security conditions in mining areas also strongly supported production growth, effectively reducing the impact of illegal mining.

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On May 7, 2026, the iron ore market showed a volatile but strengthening trend with intense trading activity. The main contract I2609 finally closed at 817 yuan/ton, up 0.62% from the previous trading session.

On May 7, 2026, iron ore futures fluctuated upward with intense trading, and the most-traded contract I2609 closed at 817 yuan/mt, up 0.62% from the previous trading session. Port spot prices were basically flat compared to the previous day. Traders showed moderate quoting activity, and steel mills remained cautious in procurement; overall spot transaction sentiment was lukewarm. Currently, iron ore supply-demand fundamentals remain stable. However, oil prices transmitted through the shipping market, leading to a significant rise in iron ore freight costs today, further supporting iron ore prices. In addition, reports indicated that the US and Iran are negotiating on resolving conflicts and reopening the Strait of Hormuz, with oil prices having fallen for three consecutive days. This news may boost market sentiment in the short term, providing positive sentiment-driven support for iron ore prices.

SMM News Flash: Indian steel mills sold around 200,000 tonnes of HRC at 580-600 USD/tonne CFR Vietnam since mid-April, while current SAE-grade offers increased to 600-610 USD/tonne CFR Vietnam. The higher offers reflect firmer regional pricing and tightening availability following previous transactions. Market sentiment is firm but cautious, with buyers becoming more resistant at elevated price levels.