In October 2026, the Chinese tungsten market experienced an initial downturn followed by a recovery, transitioning from a panic-driven decline to a supply-side-led rebound. While purchasing interest showed some signs of recovery, it remained cautious and strictly limited to essential needs.
During the first half of the month, tungsten prices continued the weak trend seen at the end of the third quarter, accelerating toward a bottom. In the raw material segment, financial pressures and panic-induced sell-offs created a negative feedback loop with the cautious, wait-and-see stance of the consumption sector. By mid-October, the price of tungsten concentrate fell below the RMB 300,000/standard ton mark, a decline of 22% in less than ten working days following the National Day holiday, placing significant strain on both market liquidity and pricing confidence. For tungsten powder and tungsten carbide powder, some negotiated prices even dipped below RMB 700,000/ton.
A pivotal turning point occurred in the latter half of October. Major tungsten enterprises entered the market to purchase ammonium paratungstate (APT) and subsequently issued firm guidance prices, signaling a clear intent to support the market. Consequently, both mines and smelters became less willing to sell at lower prices. The price of tungsten concentrate began testing the RMB 350,000/standard ton level again, posting a cumulative gain of approximately 19% during the latter part of the month, while the price of tungsten powder climbed back to the RMB 800,000/ton mark.
The tungsten scrap market experienced even more intense volatility throughout the month. For instance, the price of scrap tungsten rods plummeted by over 23% in a very short span, only to rebound rapidly with a gain exceeding 30%. Market activity was heavily driven by sentiment, with daily price fluctuations reached nearly RMB 100/kg on some days. This heightened the difficulty of executing trades and amplified short-term uncertainty across the broader market.
Currently, the tungsten market remains in a stalemate, with buyers and sellers yet to reach a consensus on pricing. Upstream producers are maintaining low operating rates and withholding supply to bolster prices, while downstream consumers are limiting procurement to match actual sales, exercising strict control over inventory replenishment. Although tungsten prices have moved up from their earlier panic-driven lows, underlying demand has yet to provide robust support. A cautious, wait-and-see sentiment prevails in the market as participants await clearer directional signals. Most are maintaining a flexible approach, avoiding one-sided bets.
