Xianglu Expands Tungsten Wire Production in China

Tungsten Wire

Surge in Tungsten Wire Output

China’s Xianglu Tungsten has significantly expanded its production of super-fine tungsten wire at its Chaozhou facility in Guangdong province. The plant is now producing 500mn meters of wire per month, targeting an annual capacity of 30bn meters that was first outlined in September 2023. This rapid scale-up underscores Xianglu’s growing role as a leading supplier of downstream tungsten products.

The expansion has already impacted the company’s financial results. Revenues for January–March rose 4.2% year on year to 481mn yuan ($66.9mn). More notably, revenue from the tungsten wire segment surged sevenfold, though the company did not disclose the exact figure. Demand is being driven by the photovoltaic sector, where fine tungsten wire is used as a cutting tool for silicon wafer slicing.

Market Impact and Price Influence

Tungsten wires totaling 100mn meters typically consume about 4t of tungsten concentrate, highlighting Xianglu’s role as a major consumer of feedstock. Alongside peers Xiamen Tungsten and Zhangyuan Tungsten, Xianglu’s bi-monthly bidding prices significantly influence spot tungsten markets. Collectively, term contracts from these firms account for 60–70% of China’s tungsten feedstock demand, according to industry estimates.

In June, Xianglu raised its bid prices to Yn171,000/t for 50% wolframite concentrate and Yn251,000/t for APT, reflecting increases of Yn8,500/t and Yn9,500/t respectively. Xiamen Tungsten also lifted APT bids to Yn250,000/t, reinforcing an upward trend in feedstock prices. These price moves suggest sustained strength in demand, even as downstream industries navigate broader economic pressures.

The Metalnomist Commentary

Xianglu’s tungsten wire expansion highlights the intersection of renewable energy growth and raw material demand. As photovoltaic installations surge, tungsten’s strategic role is intensifying. With pricing power concentrated in a few Chinese firms, global buyers remain highly exposed to policy, energy, and cost dynamics within China’s tungsten industry.