Zhangyuan Tungsten Sales Rise as Manufacturing Demand Supports Downstream Products

Zhangyuan Tungsten

Zhangyuan tungsten sales increased in 2025 as robust manufacturing demand lifted shipments of tungsten powder, tungsten carbide and cemented carbide products. The Chinese producer sold 4,928t of tungsten powder during the year, up 24% from 2024.

Zhangyuan tungsten sales also rose across higher-value downstream products. Tungsten carbide sales increased by 18% to 5,812t, while cemented carbide sales climbed by 20% to 1,363t.

Zhangyuan tungsten sales show that demand for cutting tools, industrial components and hard materials remained firm even as raw material prices corrected from record highs. The result highlights the importance of downstream tungsten products in China’s manufacturing supply chain.

Cemented carbide bar sales rose by 16% to 893t. Cemented carbide cutter sales also recovered strongly, reversing a 3% decline in the first half of 2025 to end the year up 22% at 27.11mn pieces.

Downstream Capacity Outpaces Internal Concentrate Supply

Zhangyuan has significant downstream tungsten capacity. The company has nameplate capacity of 12,000 t/yr of ammonium paratungstate, 15,000 t/yr of tungsten powder and 13,000 t/yr of tungsten carbide.

That scale makes the company a major consumer of tungsten raw materials. Its own tungsten concentrate output is not enough to meet internal demand, so it relies on external feedstock including APT and tungsten concentrate.

Zhangyuan produced 3,691t of tungsten concentrate in 2025, down slightly by 48t from a year earlier. This small decline reinforces the company’s dependence on purchased raw materials to support its downstream operations.

The operating structure matters because tungsten producers with strong downstream demand still face raw material exposure. Concentrate and APT availability can affect margins, procurement timing and product pricing.

Tungsten is strategically important for cemented carbide tools, drilling equipment, machining, aerospace, defence, electronics and high-performance industrial applications. Stronger sales from Zhangyuan therefore reflect continued demand from China’s manufacturing base.

Price Correction Slows Feedstock Buying After Record Highs

Zhangyuan lowered its term bidding price for 55% tungsten concentrate to 845,000 yuan/t for the second half of April, down from 930,000 yuan/t in the first half of the month. Its APT bidding range also fell to 1.35mn yuan/t from 1.44mn yuan/t.

The move reflected a wider correction in China’s tungsten market. Prices for 65% wolframite concentrate fell sharply after reaching record highs in March, while APT prices also declined over the same period.

Market participants reported limited spot deals and fewer term deliveries. Buyers slowed feedstock purchases because they expected further downward price corrections after the earlier price surge.

This creates a short-term tension in the tungsten chain. Downstream demand remains supported by manufacturing activity, but raw material buyers are cautious because prices moved too far too quickly.

For Zhangyuan, the key challenge is balancing strong downstream sales with disciplined feedstock procurement. If raw material prices continue to fall, margins may improve for processors that avoid overbuying at peak levels.

The broader market signal is clear. Tungsten demand remains industrially strong, but price volatility can disrupt buying behaviour across the concentrate, APT, powder and carbide chain.

The Metalnomist Commentary

Zhangyuan’s results show that China’s tungsten demand is being driven by downstream manufacturing, not only raw material speculation. The price correction may cool feedstock buying, but cemented carbide and cutting tool demand still point to tungsten’s strategic role in industrial production.