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| Tungsten prices |
Export Restrictions and Military Demand Drive Prices
Tungsten market surge continues as Chinese export limits and Middle East tensions tighten supply. Consequently, prices reached a record $2,250 per metric ton. Beijing’s export controls reduced shipments by approximately 40%, while military demand, including munitions and aerospace applications, intensified. As a result, tungsten has increased 557% since February last year, outpacing gold and copper in global commodity markets.
Western Supply Chains Seek Alternatives
In contrast, Western manufacturers face constrained tungsten supply. Almonty Industries and South Korean mines now prioritize U.S. munitions production. Meanwhile, scrap recovery and recycling help offset primary supply shortages. However, new Western mines will take at least two years to begin operations. Therefore, short-term scarcity remains, with market pricing increasingly determined by immediate supply-demand dynamics.
Strategic and Industrial Implications
Looking forward, tungsten market surge may continue amid elevated defense spending and geopolitical instability. While 60% of U.S. consumption feeds cemented carbide for construction and metalworking, military-related use is rising 12% this year. Consequently, investors, policymakers, and mill operators must monitor global supply chains and scrap utilization to manage volatility effectively.
ScrapInsight Commentary
Tungsten’s extraordinary price rally highlights the criticality of strategic metals in modern industry and defense. Recycled tungsten is emerging as a key buffer against Chinese export constraints. Policymakers and industrial planners should enhance domestic sourcing and circular economy strategies to mitigate geopolitical risk.
