A long-term contract (LTC) price is the price at which a producer sells tungsten ore or APT to a regular customer for a fixed period, usually half a month. It is published, and the market uses it as a reference. This month spot prices rebounded to meet a contract price that is itself lower than last month’s.
What an LTC is
- A price set by a producer for a period, for customers who buy on contract.
- Quoted per standard tonne of 65% WO₃ for concentrate and per tonne for APT, including 13% VAT in China.
- A reference, not a guarantee. Spot trades above or below it.
Where October stands
| Comparison | Ore | APT |
|---|---|---|
| Second-half October contract against second-half September | -4.5% | -7.1% |
| Spot on October 30 against the October contract | -2.2% | 0.0% |
| Spot APT against the smelter break-even level used in September | About -13% | |
| European contract against Rotterdam spot | Above 7% |
Prices compiled from publicly available market information and our own transaction data. No third-party source, platform, or company is represented as the basis for any rate shown. Moves are percentage changes. Company figures are as reported by the companies and summarised here. Information only — not a buy/sell recommendation and not a price forecast. Trading involves risk of loss. Consult a qualified professional before trading and verify independently.
What to read from it
- The contract no longer acts as a floor. It was cut twice (September and October) and spot fell below it before rebounding to it. In September we stopped treating the contract as a floor in our analysis.
- Smelters are still under their break-even. That is why production cuts continue and why the rebound is supply-led.
- Europe’s contract sits above its spot. The gap shows that the contract market and the spot market, outside China, are still disconnected.
Contract prices come from single producers or groups and are for reference. See the three-bounce record in Is this the third bounce? and the weekly numbers in WolfTrack Issue #5.
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