Tungsten prices continue to rise; related listed companies issue risk warnings

Staff Reporter Li Wenshan

On March 2nd, China Tungsten High-tech Materials Co., Ltd. (hereinafter referred to as “China Tungsten High-tech”) issued an “Announcement of Abnormal Fluctuations in Stock Trading,” stating that as of February 27, 2026, the company’s stock price has increased by 138.98% since the beginning of the year. The company’s rolling price-to-earnings ratio is 95.55, which is relatively high compared to industry peers. Recently, the stock price has surged rapidly, significantly deviating from the market index and industry valuation levels, posing a risk of correction. Investors are advised to be cautious of secondary market trading risks.

Regarding the correlation between the rising market value and the company’s full-year 2025 performance, a relevant person from China Tungsten High-tech’s Securities Department told Securities Daily that the company has not yet disclosed its full-year 2025 performance announcement. The company’s entire industrial chain operates from mining to deep processing products, which requires a certain cycle. Please stay tuned for official announcements for specific performance details.

In addition to China Tungsten High-tech’s risk warning announcement, Chongyi Zhangyuan Tungsten Co., Ltd. (hereinafter “Zhangyuan Tungsten”) also issued an “Announcement of Abnormal Fluctuations in Stock Trading” on March 2nd. Public information shows that Zhangyuan Tungsten expects to achieve a net profit of 260 million to 320 million yuan in 2025, representing a year-on-year increase of 51% to 86%.

“The company’s stock price has increased by 186.32% since January 1, 2026, with a significant short-term rise, and there is a risk of a pullback in the short term. Additionally, stock prices are influenced by many factors; performance is just one of them,” a relevant person from Zhangyuan Tungsten’s Secretary Office told Securities Daily.

According to data from Xiamen Zhongtung Online Technology Co., Ltd. (hereinafter “Zhongtung Online”) big data platform, as of February 28th, tungsten concentrate prices broke through 800,000 yuan per ton, ammonium paratungstate (APT) prices rose to 1.2 million yuan per ton, tungsten powder prices reached 2 million yuan per ton, and waste tungsten rods prices hit 1.1 million yuan per ton. Compared to the same period last year, mainstream tungsten product prices have increased four to five times.

Zhongtung Online stated that the main reasons for the high and persistent tungsten prices are supply constraints and market sentiment. First, measures such as controlling domestic tungsten mining volume, enforcing compliance mining and trade regulations, combined with declining ore grades and short-term capacity limitations of new mines, have laid the foundation for supply tightening. Second, after the Spring Festival, the restart process of mining enterprises has been relatively slow downstream. Based on traditional experience, peak production is expected after March, further exacerbating short-term supply shortages.

“The current non-ferrous metals industry shows a clear divergence between upstream and downstream sectors. Upstream companies benefiting from rising commodity prices have gradually restored profitability, while mid- and downstream industries face profit compression due to increased costs. If cost pass-through remains ineffective in the short term, some second- and third-tier downstream companies may exit the market,” said Qu Fang, an investment advisor at Wanlian Securities, to Securities Daily.

Regarding strategies for companies at different stages of the supply chain, Qu Fang suggested that upstream companies should increase mining acquisitions and exploration efforts while reducing operating costs. Mid- and downstream companies should focus on developing high-end tungsten products, enhancing technological content, added value, and technical barriers to convert these into profits. Additionally, they should secure supply chain stability through long-term contracts and stable upstream suppliers.