 |
| Tungsten |
Global Tungsten Market Faces Persistent Supply Shortage
Tungsten prices have surged fivefold over the past year due to declining ore grades, Chinese export restrictions, and underinvestment. As a result, inventories remain critically low, and deficits are forecasted for 2026. Meanwhile, demand continues to grow from defense, manufacturing, and mining sectors, reinforcing tungsten’s strategic importance.
Five Mechanisms Could Rebalance Tungsten Market
BMO analysts identify five potential solutions, including artisanal mining expansion, recycling, and gradual new mine development. However, none offers a quick fix. In contrast, China dominates 75% of global supply, limiting near-term production growth. Therefore, sustained high prices are likely required to incentivize new investments outside China.
Long-Term Outlook and Strategic Implications
Tungsten’s critical role in machine parts, drill bits, and hard-facing materials makes substitution challenging. Consequently, elevated prices may persist, driving innovation in secondary supply chains. In addition, rising defense and reindustrialization spending in the U.S. and globally will increase demand for this essential raw material.
ScrapInsight Commentary
Tungsten’s supply shortage highlights the need for diversified sourcing, recycling, and investment in new mines. Analysts expect prices to remain elevated, incentivizing long-term production growth. The metal’s strategic role underscores its importance in industrial, defense, and manufacturing policies globally.
