Tungsten‑Price Surge Fuels Momentum for Xianglu Tungsten and Peer Stocks

The Chinese market has witnessed a dramatic rally in the tungsten sector, driven by a steep climb in raw‑material prices and a renewed focus on strategic metals. Xianglu Tungsten Co., Ltd. (ticker: XLWY), a Shenzhen‑listed producer of tungsten carbide, trioxide, and alloy products, has been a key beneficiary of this trend. The company’s stock, which closed at 35.85 CNY on 2026‑02‑23, reached a 52‑week high of 38.95 CNY on 2026‑02‑12, underscoring the heightened investor interest.

1. Market Context

  • Tungsten Price Increase – According to a report by qianlong.com dated 2026‑03‑02, tungsten prices have risen more than four times since the start of the year. By 2026‑02‑28, key tungsten products—such as tungsten concentrate, ammonium tungstate (APT), and tungsten powder—were up over 400 % from early 2025 levels.

  • Price Breakpoint – The price of tungsten powder surpassed 1,800 CNY per kilogram, a critical threshold that has amplified demand for tungsten‑based products across various industries.

  • Sector Rally – Multiple news outlets (eastmoney.com, sina.com.cn) reported that the tungsten and small‑metal sectors were among the strongest performers in A‑share markets during late February and early March. Shares of leading tungsten companies—Xianglu Tungsten (XLWY), Zhangyuan Tungsten, Zhongwu High‑Tech, and Xiamen Tungsten—experienced consecutive daily limit‑ups (two‑day limit‑up for XLWY) and posted year‑to‑date gains of 186 % for XLWY and 187 % for Zhangyuan.

2. Xianglu Tungsten’s Position

  • Production Profile – XLWY specializes in designing, manufacturing, and selling tungsten carbide, trioxide, alloy, and related products, positioning it as a downstream player that can capture value from higher raw‑material costs.
  • Market Capitalisation – With a market cap of approximately 11.74 billion CNY, XLWY is a mid‑size entity that benefits from both operational scale and flexibility.
  • Profitability Metrics – The company’s price‑earnings ratio is markedly negative (‑2060), indicating that earnings have been adversely impacted, likely due to the recent price volatility and cost pressures. Nonetheless, the surge in tungsten prices provides a buffer, potentially improving margins if production costs remain controlled.

3. Investor Implications

  • Valuation Upside – The sharp rise in tungsten prices suggests a potential upside for companies with a significant downstream manufacturing footprint. XLWY’s earnings per share could improve as the firm captures higher gross margins on its tungsten‑based products.
  • Risk Considerations – Despite the positive price trajectory, the negative P/E ratio signals that the market currently discounts future earnings heavily, possibly reflecting concerns about sustainability of price gains or cost‑increasing dynamics in upstream inputs.
  • Sector Dynamics – The small‑metal sector is experiencing a broader rally, buoyed by strategic resource narratives and global supply‑chain pressures. Investors should monitor macro‑economic signals, such as changes in global demand for high‑tech components, and geopolitical developments that could affect supply routes.

4. Concluding Remarks

The recent quadruple rise in tungsten prices has placed Xianglu Tungsten and its peers at the forefront of a sectoral up‑trend. While the company’s valuation remains steeply discounted relative to earnings, the current price environment offers a window of opportunity for value creation, especially if the firm can leverage its manufacturing capabilities to convert higher raw‑material costs into improved profitability. Investors should weigh the short‑term market enthusiasm against longer‑term earnings sustainability as the tungsten market continues to evolve.