Two major events shifted the tungsten market this week. China formally cut its long-term contract (LTC) procurement prices for the second half of September, and August 2026 customs data revealed that China is importing tungsten ore at 152% above year-ago levels — mostly low-grade polymetallic material from Myanmar and Mozambique. Together these two data points tell a clear story about where the Chinese tungsten chain stands heading into the fourth quarter.

Chongyi Formally Cuts APT Long-Term Contract Price by CNY 20,000

On September 20, 2026, a major tungsten enterprise in Chongyi County, Jiangxi Province released its long-term purchasing quotes for the second half of September:

All prices are inclusive of 13% VAT. This is the first formal reduction in the APT long-term contract floor in this cycle. For most of August and the first half of September, Chongyi held its LTC at CNY 600,000 even as spot APT traded at CNY 590,000–595,000. Smelters were losing money on every tonne processed but holding the LTC to defend the psychological price floor. That defence has now been formally abandoned. The new LTC at CNY 580,000 aligns the official contract price with where spot has already been transacting.

CTIA confirmed on September 21 that another Jiangxi enterprise also lowered LTC prices, confirming this is not an isolated move. The market is now bargaining against the new LTC of CNY 580,000 per tonne. Tungsten powder quotes have been adjusted to CNY 880/kg and tungsten carbide powder to CNY 840/kg. CTIA describes the market atmosphere as predominantly cautious and bearish, with various segments facing substantial funding pressures and intensifying wait-and-see behaviour.

What the LTC Cut Means for Indian Sellers

The India FOB price for tungsten carbide drill bits 90%+ was published at $102.50/kg on September 17, 2026 — a drop of $12.50 from the previous eight-week level of $115/kg. The Chongyi LTC cut, which came three days later, confirms the direction of pressure. How far the India FOB correction extends depends on whether October demand delivers the recovery that September failed to provide.

For Indian carbide scrap sellers currently holding inventory: the LTC cut removes Chinese buyer urgency. Buyers have no reason to rush in at $102.50 when the LTC itself is being cut. Golden Week (October 1–7) will further suppress activity. The October 8 restart of Chinese buying — whether manufacturers rebuild inventory after the holiday or continue to sit out — is the first real signal of Q4 demand direction. WolfTrack Issue #012 will carry the full analysis on Thursday September 24.

China Imported 5,506 Tonnes of Tungsten Ore in August — Up 152% Year-on-Year

August 2026 customs data reveals a dramatic surge in Chinese tungsten ore imports:

Source breakdown by country of origin: Myanmar 46.5% (2,558 tonnes), Mozambique 26.0% (1,433 tonnes), Kazakhstan 13.9% (767 tonnes), Vietnam 2%. CTIA and SMM both note that shipments from Myanmar and Mozambique consist mostly of low-grade polymetallic ores.

Two-thirds of China’s August tungsten imports came from Myanmar and Mozambique. The import value fell 42% month-on-month even as volume rose 40% — the average price per tonne dropped sharply. China is compensating for tightened domestic mining quotas by importing cheap, low-grade ore from African and Southeast Asian sources. This cheap ore feeds smelters who process it into APT at a loss. The problem is not a shortage of ore — it is a shortage of ore that can be profitably processed at current APT prices.

China Exported 303 Tonnes of Tungsten Carbide in August — Up 178% Month-on-Month

After months of controlled exports under China’s 15-firm licensing system, the August surge suggests that licensed firms released accumulated inventory in response to urgent demand from their four major buyers. South Korea, Japan, Germany, and France — all significant tungsten carbide processing and tool manufacturing nations — accounted for 98% of these exports. Their urgency to secure WC material in August is the same procurement anxiety that drove Sandvik’s subsidiary WBH to pay USD 3 million upfront for Spanish tailings offtake rights on September 17, and the US Department of War to commit USD 450 million to Elmet’s tungsten supply chain on September 14.

For context, the current global tungsten prices show China domestic WC scrap at around USD 94/kg while European WC powder transacts near USD 300/kg. This spread — and the documented urgency of Western buyers — makes certified Indian carbide scrap one of the most strategically valuable commodities available in the current market.

India Defence Production Hits Record Rs 1.78 Lakh Crore

India’s indigenous defence production reached Rs 1.78 lakh crore in FY 2025-26 — a 15.6% year-on-year increase and more than four times the FY14 level. Defence exports hit a record Rs 38,424 crore, with Indian products now exported to over 80 countries. Post-Operation Sindoor urgency has further accelerated both production and procurement timelines.

The connection to tungsten carbide is direct. Precision defence manufacturing — artillery systems, missile components, armour-piercing ammunition, aerospace engine parts, submarine components — uses tungsten carbide cutting tools at every machining stage. A Rs 1.78 lakh crore defence manufacturing base generates significant volumes of worn carbide drill bits, inserts, and rods as manufacturing waste from clusters in Bengaluru, Pune, Hyderabad, Chennai, and the NCR corridor. As India’s defence base expands, India-origin carbide scrap volumes will grow proportionally.

If you generate tungsten carbide scrap from defence or precision manufacturing, your material qualifies as documented India-origin non-Chinese carbide scrap — the exact category Western recyclers seek at premiums above current India FOB. See current buying rates in your city.

What to Watch This Week

WolfTrack Issue #012 publishes Thursday with the full weekly decode including the September 24 India FOB assessment. Subscribe at Rs 499 per month — UPI: 9310657218.