Latest Update in the SMM Tungsten Market

[SMM Commentary: Tight Supply in Tungsten Mining Sector Drives Tungsten Prices to Record Highs, Up Nearly 17% Year-to-Date] Factors contributing to the tight supply in the tungsten market, such as the decline in the first batch of total tungsten ore mining control indicators for the year, the decrease in ore grade, and extremely low inventory of high-grade tungsten ore, have supported tungsten prices. Some suppliers are optimistic about the boost to future tungsten demand from global military upgrades and emerging industries, leading to strong reluctance among suppliers to sell. Low-priced tungsten is hard to find in the market, and tungsten prices have risen % year-to-date, breaking their previous record high. According to SMM, the market transaction price for high-grade tungsten ore exceeded 170,000 yuan/metric tonne in the afternoon of May 29.

May 12-16, 2025 Currently, the supply of upstream raw materials is tight. Due to the reduction in mining quotas, suppliers have generally adopted a strategy of refusing to budge on prices and holding back sales, leading to a continuous increase in the prices of tungsten concentrate ore, which in turn drives up the overall tungsten market prices. Meanwhile, APT prices have surged significantly due to the dual pressures of cost and profit. As downstream enterprises gradually exhaust their low-cost inventory, they have no choice but to purchase high-priced APT, further driving up its prices. This market dynamic has enabled smelters to finally turn losses into profits this week, benefiting from the restocking purchases of downstream enterprises.

May 6, 2025 - May 9, 2025 Currently, due to the reduction in upstream tungsten concentrate mining quotas, market supply is tight, leading to a continuous rise in tungsten concentrate prices. This situation has significantly increased the raw material costs for smelters, thereby severely compressing the profit margins of enterprises. Despite the overall increase in tungsten market prices driven by tight supply, the price increase of APT has failed to keep pace with the rise in raw material prices due to the relatively stable downstream demand. The continuous rise in tungsten concentrate prices has further eroded the profits of APT this week, and the situation of smelters operating at a loss is unlikely to improve in the short term.

[SMM China Tungsten Market Daily Report on April 28]

[Notice from the Ministry of Natural Resources on Issuing the Total Control Indicators for Tungsten Ore Mining Output in 2024] Departments in charge of natural resources in the Inner Mongolia Autonomous Region, Heilongjiang Province, Zhejiang Province, Anhui Province, Fujian Province, Jiangxi Province, Henan Province, Hubei Province, Hunan Province, Guangdong Province, Guangxi Zhuang Autonomous Region, Yunnan Province, Shaanxi Province, Gansu Province, and the Xinjiang Uygur Autonomous Region: To protect and rationally develop superior mineral resources, in accordance with the relevant regulations on the management of specific minerals subject to protective mining, we hereby notify you of the following matters regarding the implementation of total control indicators for tungsten ore mining output in 2024.

April 25 SMM China Tungsten Market Daily

The tax-included procurement pricing for tungsten raw material long-term contracts in the second half of April by Guangdong Xianglu Tungsten: 55% black tungsten concentrate at 145,000 yuan/mt; 55% white tungsten concentrate at 144,000 yuan/mt; up 3,000 yuan/mt MoM. APT at 215,000 yuan/mt; up 4,000 yuan/mt MoM.

April 21-25, 2025 Currently, the tight supply of upstream raw materials has led suppliers to generally stand firm on quotes and hold back sales, causing the price of tungsten concentrate to continue rising. This has further increased the raw material costs for smelters, severely compressing the profit margins of enterprises. Although product prices have risen due to the impact of ore prices, the increase has been limited. As downstream market demand has not improved, the profit margins of enterprises have not seen any improvement. This week, the profit of APT continued to decline, and the inverted price situation of smelters is difficult to improve in the short term.

April 24 SMM China Tungsten Market Daily Report

SMM China Tungsten Market Daily Report on April 23