Tungsten Weekly Review: Raw material tungsten ore stabilized downstream products

**Abstract** Core Tip: This week, the domestic tungsten market experienced a decline. Among the products, ammonium paratungstate (APT) saw the steepest drop, falling by 5,000 yuan/ton. Tungsten iron followed with a decrease of 3,000 yuan/ton, while tungsten powder and tungsten carbide dropped by 2,000 yuan/ton. Scrap tungsten steel fell slightly by about 1 yuan/kg. Meanwhile, tungsten concentrate and sodium tungstate remained relatively stable. On the international front, ferro-tungsten supply remains tight, with prices still rising, though at a slower pace. Domestic APT prices have started to stabilize. **Domestic Market Overview** 1. **Tungsten Concentrate** This week, the domestic tungsten concentrate market remained flat. The mainstream price for 65% black tungsten concentrate in Zhangzhou and Hunan ranged between 13–13.3 million yuan/ton, while white tungsten concentrate was priced around 129–132 million yuan/ton. Last week, the tungsten mine market had seen a slight decline, but after Minmetals released its second pricing for May, the black tungsten concentrate settled at 138,000 yuan/ton, helping to stabilize merchant sentiment. Although downstream smelting products continued to fall, transactions remained low, yet the tungsten ore price held firm above 130,000 yuan/ton, indicating that miners remain optimistic. Some companies, however, are under financial pressure and are selling at lower prices, with the lowest reported at 128,000 yuan/ton. Analysts suggest that the market is likely to stay steady next week until the June guidance price is announced. 2. **Ferro-Tungsten** The price of ferro-tungsten has stabilized this week. The mainstream price for 70% ferro-tungsten in Ningbo and Hunan remained around 183–186 million yuan/ton, down 3,000 yuan/ton from last week. Similarly, 80% ferro-tungsten prices were maintained at 1.92–1.95 million yuan/ton, down 2,000 yuan/ton. The drop in prices was mainly due to weak demand and increased competition as some manufacturers resumed operations. Despite this, the market remains volatile, with merchants adopting a wait-and-see approach. It is expected that prices will remain stable next week. 3. **Tungsten Chemicals** Ammonium paratungstate (APT) saw a significant drop this week, with prices in Hunan falling to 1.9–1.92 million yuan/ton, down 5,000 yuan/ton from last week. The sharp decline was attributed to weak raw material demand, oversupply in the "valuable market-free" zone, and some producers lowering prices to clear inventory. Additionally, APT had risen too quickly in recent weeks, creating a bubble effect, which contributed to the current correction. Next week, APT prices are expected to remain around 1.92 million yuan/ton with limited fluctuations. Sodium tungstate, on the other hand, remained stable, with prices unchanged at 13.6–14 million yuan/ton. However, demand remains weak, and some traders are showing interest. With scrap prices dropping, production costs may also fall, leading to potential price weakness next week. 4. **Tungsten Products** The tungsten product market saw a slight decline this week. Medium-grain tungsten powder traded at 295–297 yuan/kg, and tungsten carbide at 293–295 yuan/kg, both down by 2–3 yuan/kg. Despite the drop, prices are still supported by high raw material costs. Tungsten rods and electrodes also saw modest declines, with steel-making tungsten strips priced at 310–320 yuan/kg, down 15 yuan/kg from last week. Tungsten electrode polished rods remained stable at 460–470 yuan/kg. Overall, the market is expected to remain stable next week. 5. **Scrap Tungsten** The scrap tungsten steel market declined slightly this week. Domestically sourced scrap tungsten blades were purchased at 170–173 yuan/kg, while imported blades were priced at 179–182 yuan/kg, down 1 yuan/kg. Waste tungsten drill bits remained stable at 190–193 yuan/kg, while waste tungsten blocks fell to 210–213 yuan/kg, down 2 yuan/kg. The overall transaction price is moving toward lower levels, with high prices gradually disappearing. Scrap tungsten prices also dropped slightly, with grades ranging from 1.75–1.8 yuan/degree for 70% or higher W content, down 0.1 yuan/degree from last week. Merchants are not eager to cut prices further, and the market is expected to stabilize next week. **International Market** Overseas tungsten prices continued to rise slightly this week. The Rotterdam price for ferro-tungsten stood at 47.5–48.5 USD/kg, up 0.5 USD from the previous week. Hong Kong prices for ferro-tungsten remained stable at 53–55 USD/kg, while APT was quoted at 375–383 USD/ton. European prices stayed between 355–365 USD/ton. With the global real economy recovering and the European debt crisis easing, demand is improving, and steel mills are beginning to pick up. As a result, overseas tungsten prices are expected to remain stable or continue rising next week. **Market Outlook** Currently, the domestic steel market is in a rapid decline phase, with a severe supply-demand imbalance. Some steel mills have reduced or halted production, leading to declining demand for raw materials like ferroalloys. Next week, the guidance prices from Minmetals and Jiangxiang are expected to be released again. Industry expectations suggest that the tungsten guidance price will remain stable. Given the ongoing downward trend in downstream demand and lack of support for price increases, the domestic tungsten mine market is likely to continue operating steadily. Prices for tungsten chemicals and products that rose earlier may experience weak adjustments in the coming week.

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