China tungsten prices surge on solar, superalloy and defense demand

Tungsten

China tungsten prices surge on unexpectedly strong prompt buying. China tungsten prices surge as APT and concentrate jump in late August. As a result, China tungsten prices surge while spot trades clear well above term bids.

Spot tightness and term contracts diverge

Prices for 65% wolframite hit Yn252,000–262,000/t on 28 August. They rose from Yn234,000–236,000/t on 26 August. That is up 32% in August and 86% year-to-date. APT 88.5% rose to Yn360,000–380,000/t ex-works. It climbed from Yn340,000–350,000/t over the same period. Producers in Jiangxi and Hunan ran at low rates to honor term contracts. Suppliers reported thin inventories and began withholding sales. Spot deals cleared at Yn380,000–400,000/t for APT this week. Doped tungsten powder traded near Yn600/kg for superalloys.[Price Link: https://supermetalprice.com/]

Demand spikes across solar, tools, and defense

Solar glass, cutting tools, and superalloy buyers drove the rally. Market participants urged quick purchases to avoid higher costs tomorrow. Key state-linked groups floated August APT bids at Yn305,000–340,000/t. These levels sat far below active spot prints. Term volumes still covered roughly 80% of liquidity. However, immediate needs and investor buying set marginal prices. China’s defense procurement lifted cemented tools and AP core plans by 42%. That signaled firm tungsten pull from military channels.

Meanwhile, Li-ion and solar supply chains expanded tungsten use. Tungsten wire for silicon slicing may consume 4,500t in 2025. That rises from 2,000–3,000t in 2023–2024. Battery applications added about 1,500t over the past year. That total rose 22% year on year. These shifts increased sensitivity to short-term tightness. Therefore, small inventory gaps triggered rapid price jumps.

Supply constraints and medium-term outlook

Resource depletion and mining limits constrained feed. New large mines remain years away. The Dahutang project holds 1.21mn t of WO₃ reserves. It is unlikely to start before three years from now. Prices may stabilize or soften after restocking. That depends on whether prompt demand cools. Yet long-term fundamentals still look firm. China plans major infrastructure, nuclear, and grid projects. The Xinjiang–Tibet railway also supports metal intensity.

The Metalnomist Commentary

The spread between spot APT and state-linked term bids underscores scarcity at the margin. If defense and solar orders persist, pullbacks may prove shallow. Watch Dahutang timelines and export policies; absent new supply, volatility should remain elevated.