Tungsten Prices Surge 557% as China Export Limits Tighten Global Supply

A metal rarely discussed outside mining circles is suddenly commanding attention across defense and technology supply chains. Tungsten, a super-dense material used in drilling equipment, semiconductors and armor-piercing weaponry, has surged to record levels as geopolitical tensions and tightening supply reshape the market. According to the APT European benchmark from Fastmarkets, prices have climbed above $2,250 per metric ton unit, more than doubling this year and rising 557% since China placed certain tungsten products on its export control list in February last year during a trade dispute with the US.

Supply pressures appear to be intensifying as buyers work through stockpiles and Chinese shipments shrink. China accounted for about 79% of the 85,000 metric tons produced globally last year, according to the US Geological Survey, and shipments of restricted tungsten products from the country dropped roughly 40% last year, according to Project Blue. Manufacturers have been searching for alternative supply as a result. Almonty Industries began production at a tungsten mine in South Korea in December and is also pursuing development of what could become the first US tungsten mine in a decade, while the company's chief executive said US authorities recently contacted the firm regarding immediate material availability, with almost half of its South Korean output allocated to munitions production in Pennsylvania.

Demand tied to military activity may also be contributing to the market squeeze. Project Blue estimates tungsten consumption linked to defense applications such as helicopters, fighter jets and ammunition could increase 12% this year. The metal's density allows projectiles to retain momentum and penetrate armor, which explains its use in missile components, artillery shells and aircraft counterweights. Even so, the tungsten market remains relatively small and opaque compared with larger commodities, with Project Blue estimating its value at about $16 billion this year, suggesting price movements could remain volatile as buyers compete for limited supply.