In the first quarter of 2026, China's tungsten industry maintained strong momentum, with leading listed tungsten companies experiencing a significant earnings surge. Both revenue and net profit saw substantial year-on-year growth, continuing and amplifying the high-growth trend observed since 2025. Key players such as Zhangyuan Tungsten, China Tungsten and Hightech, and Xiamen Tungsten all reported robust performance, while Xianglu Tungsten achieved a staggering near-30-fold increase in net profit, largely due to its exceptionally low base in the previous year.
This strong earnings growth is attributed to rising tungsten prices, tight supply-demand dynamics, and expanding high-end demand from sectors such as photovoltaic tungsten wire, semiconductors, and defense. Companies leveraged their full-industry-chain layouts, effective cost control, and efficient price pass-through mechanisms to achieve notable improvements in gross margins.
However, it is noteworthy that tungsten prices in 2026 followed a pattern of rising first before declining. After hitting a record high in March, prices retreated by over 30% in April. Despite this volatility, industry participants and companies generally agree that rigid supply constraints and steady growth in emerging demand provide solid long-term support for tungsten prices. Profits across the industry chain are expected to continue shifting toward upstream resource holders, leading to further differentiation in the operational performance of companies at various stages of the value chain.
**Sustained Surge in Corporate Profits** In Q1 2026, most major listed tungsten companies reported significant profit growth. Zhangyuan Tungsten recorded revenue of RMB 2.631 billion, up 121.76% year-on-year, with net profit reaching RMB 381 million, an increase of 795.78%. China Tungsten and Hightech posted revenue of RMB 7.007 billion, a 106.47% rise, and net profit attributable to shareholders of RMB 921 million, up 264.44%. Xiamen Tungsten achieved revenue of RMB 15.743 billion, growing 86.99%, and net profit of RMB 1.107 billion, an increase of 189.14%.
The most remarkable growth was seen at Xianglu Tungsten, which reported Q1 revenue of approximately RMB 1.148 billion, up 138.65% year-on-year, and net profit attributable to shareholders of about RMB 251 million, soaring 2,917.13%.
The strong quarterly performance is closely linked to the continued rise in tungsten prices. China Tungsten and Hightech attributed its growth to factors including industry supply-demand dynamics, advantages of a full industry chain, booming high-end demand, asset integration, and cost control. Zhangyuan Tungsten stated that the significant Q1 growth was mainly due to sharp increases in raw tungsten prices, which were successfully passed downstream, leading to higher product selling prices and improved gross margins, highlighting clear synergistic benefits across the chain. Xiamen Tungsten cited "volume and price increases" as key drivers, while Xianglu Tungsten emphasized smooth price transmission and enhanced毛利率.
Companies demonstrating strong earnings growth are predominantly positioned in the mid-to-upstream segments of the industry chain. China Tungsten and Hightech and Xiamen Tungsten have adopted full-industry-chain strategies. China Tungsten and Hightech controls tungsten mine resources and has expanded into downstream high-end cutting tools. Xiamen Tungsten is involved in midstream ammonium paratungstate (APT) smelting and downstream photovoltaic tungsten wire production. Zhangyuan Tungsten specializes in mining and tungsten powder, while Xianglu Tungsten's operations span upstream and midstream activities including APT smelting, tungsten oxide, tungsten powder, and tungsten carbide powder production, as well as downstream products like hard alloys and tungsten wire.
Notably, these companies already exhibited strong earnings momentum in 2025. That year, Xiamen Tungsten reported revenue of RMB 46.265 billion, up 30.79%, and net profit of RMB 2.309 billion, rising 34.89%, benefiting from contributions from tungsten and molybdenum, growth in energy new materials, and an improved permanent magnet motor industry chain. As a leading central state-owned enterprise, China Tungsten and Hightech achieved 2025 revenue of RMB 17.639 billion, up 19.34%, with net profit increasing 29.20% to RMB 1.281 billion. Zhangyuan Tungsten, a private enterprise, showed high earnings flexibility, with 2025 revenue of RMB 5.202 billion, up 41.62%, and net profit surging 68.82% to RMB 290 million. Smaller player Xianglu Tungsten turned a profit in 2025, reporting revenue of RMB 2.409 billion, up 37.71%, and net profit of RMB 144 million.
Overall, the Q1 2026 performance of these leading tungsten companies continued the upward trend seen in 2025. Growth rates in the first quarter of 2026 were even more pronounced, with Xianglu Tungsten showing particularly sharp increases due to its previously low base.
However, not all tungsten companies delivered satisfactory results. For instance, Jiangwu Equipment reported a net loss of RMB 291 million in 2025, marking its fourth consecutive year of losses. The loss was not attributed to tungsten industry conditions, as its tungsten-related business is still in a "planned injection" phase. The company stated that its coal business remained deeply unprofitable until it was divested in 2025. Although it acquired a 57% stake in Ganzhou JinHuan Magnetic Separation Technology Equipment Co., Ltd. to bolster its magnetic separation equipment business, contributions from the new operation have yet to offset losses.
**Impact of Tungsten Price Volatility** Tungsten prices in 2026 initially rose before falling. Building on 2025’s strong upward trend, prices continued climbing early in the year. According to data from China Tungsten Online, the price of 65% black tungsten concentrate reached RMB 1.05 million per metric ton on March 12, while tungsten powder and tungsten carbide powder rose to RMB 2,400/kg and RMB 2,340/kg, respectively, setting new historical highs.
However, influenced by factors including capital flows, market sentiment reversed in April, leading to a sharp price correction. By the end of April, the price of 65% black tungsten concentrate had fallen to around RMB 700,000 per metric ton, a decline of over 30% from the peak.
Despite the significant correction, the long-term outlook for tungsten prices remains intact. Core factors supporting high price levels are still considered solid. Zhang Xinyuan, head of Kefangde Consulting, noted that tungsten supply continues to be constrained by mining quotas, environmental regulations, and export controls, resulting in limited overall supply elasticity and low raw material inventories across the industry. Meanwhile, emerging demand from sectors like photovoltaic thin tungsten wire, high-purity tungsten for semiconductors, and high-end military materials is steadily expanding, while traditional hard alloy demand remains resilient. In the short term, tungsten prices are expected to fluctuate at high levels. Over the medium to long term, a gradual supply-demand gap is anticipated to push price trends upward, with a sharp decline considered unlikely.
Leading companies in the tungsten industry chain, however, have adopted a more cautious stance. Regarding market trends, China Tungsten and Hightech noted in a recent earnings briefing that, from a supply-demand perspective, China’s strict controls on total tungsten mining output continue, with limited new compliant capacity coming online. Coupled with resource depletion at older mines and long lead times for restarting or developing new mines, raw material supply is expected to remain tight throughout 2025. Downstream demand for hard alloys, cutting tools, photovoltaic tungsten wire, and high-end military materials is recovering steadily, maintaining a tight supply-demand balance. However, the company emphasized that commodity prices are influenced by multiple factors and are difficult to predict accurately.
It was also noted that companies like China Tungsten and Hightech are actively enhancing their control over tungsten resources, with expectations of new mineral resource injections.
Companies at different stages of the industry chain will face varying operational conditions. According to Zhang Xinyuan, profits within the tungsten industry chain will continue shifting toward upstream resource holders. Upstream companies with owned mines and quota advantages will enjoy the strongest profit stability. Midstream smelters will rely on processing fee models for stable operations, with a strategic focus shifting toward high-purity production and tungsten scrap recycling. Downstream players will see further divergence: traditional standard hard alloy manufacturers will face greater cost pressure from raw materials, while companies involved in photovoltaic tungsten wire, semiconductor targets, and high-end military processing are likely to capitalize on high-growth segments. Integrated full-industry-chain leaders are expected to strengthen their competitive advantages.
Wu Zewei, a special researcher, also indicated that midstream smelting and processing enterprises face cost pressures and capacity constraints, with competitiveness hinging on technological upgrades. Downstream companies in hard alloys and tungsten special steel may benefit from growing high-end manufacturing demand, potentially improving gross margins, but must remain cautious about price transmission risks. Overall, industry chain profits are likely to tilt further upstream.
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