it continues to climb....Tungsten Market Long-term Contracts...

it continues to climb....

Tungsten Market Long-term Contracts Raised Again, Demand Under Pressure[SMM Analysis]

May 20, 2024 21:09

Source:SMM

At the beginning of the week, a new round of long-term contract priceswas gradually announced, showing a significant upward trend:

Chongyi Zhangyuan Tungsten Co., Ltd.'s long-term contract prices for thesecond half of May are as follows (all prices include 13% VAT):
1. 55% Black Tungsten Concentrate: 156,000 yuan/mt, up 12,500 yuan/mtfrom the previous quote;
2. 55% White Tungsten Concentrate: 155,000 yuan/mt, up 12,500 yuan/mtfrom the previous quote;
3. Ammonium Paratungstate (National Standard Zero Grade): 233,000 yuan/mt, up22,000 yuan/mt from the previous quote.

Jiangxi Tungsten Holding Group Co., Ltd.'s guidance price for NationalStandard First Grade Black Tungsten Concentrate for the second half of May 2024is 156,000 yuan/mt (up 12,000 yuan/mt from the previous quote).

Xiamen Tungsten has suspended long-term contract quotations today.

[Supply..Side]
Currently, the main theme of the tungsten market remains "tight supply atthe mine end driving tungsten prices to continue rising." Some mine-endsellers conducted profit-taking operations at the beginning and middle of thismonth, slightly improving the market circulation of raw materials, withpurchases and sales proceeding as needed.

[Demand..Side]
Some photovoltaic companies have reported that due to the relatively longlifespan and low cutting loss rate of photovoltaic tungsten wire, its marketshare will continue to expand as silicon wafers become thinner. Currently, theusage rate of photovoltaic tungsten wire in some photovoltaic companies hasreached 50-70%, indicating a strong demand potential.

ComprehensiveAnalysis: At present, the tight supply situation of tungsten raw materials hasnot yet eased. Together with the significant pressure on APT smelters (rapidlyrising raw material costs + stable demand hindering price increases), onlylong-term contract production deliveries are maintained, so the marketcirculation of raw materials remains tight. The upward momentum of tungstenprices has slowed, but with the support of long-term contract prices, thepossibility of short-term tungsten price increases remains high.