Chinese Tungsten Prices Expected to Stabilize Amid Term Bids and Offers

Chinese Tungsten

China’s spot tungsten prices are forecasted to remain stable in the coming week following the announcement of term bids and offers for the second half of December by key producers and consumers. Firm concentrate costs have counteracted soft downstream demand, keeping price fluctuations minimal over the past month.

As of December 19, 65% grade wolframite was priced at 142,500-143,500 CNY/t ($19,521-19,658/t) ex-works, reflecting only a 500 CNY/t dip from the previous month. Similarly, prices for 88.5% grade ammonium paratungstate (APT) dropped by 1,000 CNY/t to 209,500-210,500 CNY/t ex-works.

Key Players Maintain Stability

• Xiamen Tungsten, one of the leading tungsten consumers, kept its APT bid price steady at 209,500 CNY/t, unchanged from earlier December levels.

• Zhangyuan Tungsten lowered its second-half December APT bid price slightly to 209,500 CNY/t, down 500 CNY/t from the first half of December. The company also reduced its bid price for 55% grade tungsten concentrate to 140,000 CNY/t, a 500 CNY/t decline.

• Jiangxi Tungsten, a prominent tungsten producer, maintained its 65% grade wolframite concentrate offer price at 142,500 CNY/t, consistent with early December levels.

Contract Commitments Drive Market Trends

Long-term contracts remain pivotal in stabilizing tungsten prices, with term commitments accounting for 60-70% of total deals in the market. Spot suppliers often adjust their pricing strategies to align with these term bids and offers.

As the year ends, sellers of tungsten concentrate and APT have shown reluctance to lower prices, anticipating restocking demand ahead of China’s Lunar New Year holiday in late February.