China Tungsten Hits Record High Amid Middle East Conflict

China Tungsten Hits Record High as Middle East Conflict Escalates

China tungsten hits record high following US-Israeli strikes on Iran. Suppliers raised ammonium paratungstate (APT) offers to 1.25–1.26mn yuan/t ($2,060–2,070/mtu) on 2 March, up sharply from 1.12–1.13mn yuan/t on 26 February. Some traders expect prices to exceed 1.5mn yuan/t in the near term.

The Middle East conflict increases attention on tungsten’s strategic and military value. Defence applications accounted for approximately 9% of global tungsten demand in 2024. Analysts say heightened geopolitical risk prevents prices from falling and supports upward momentum.

Freight and logistics costs are also rising. Projectiles have struck at least three vessels near the Strait of Hormuz, while port infrastructure sustained damage. Shipping disruptions threaten regional trade flows, potentially affecting other metals like titanium and vanadium.

Broader Metals Market Response and Strategic Supply Implications

China’s copper prices eased as post-holiday demand remained subdued. However, inventories are rising, and prolonged conflict may push prices higher. Brent Crude surged 13% to $82.17/bl, while gold on the Shanghai Futures Exchange rose 3%.

Aluminium markets may also feel pressure from Iran’s partial output cuts. Iran has 800,000 t/yr of smelting capacity, producing roughly 600,000 t/yr. Supply disruptions could support overseas and domestic aluminium prices. Meanwhile, molybdenum demand may increase as oil-producing countries ramp up output post-strikes.

Governments and industrial consumers are emphasizing supply-chain security for critical minerals. Tungsten, titanium, molybdenum, germanium, gallium, antimony, rhenium, and rare earths are increasingly viewed as essential for defence and strategic industries. China’s tightened export controls further amplify global price volatility.

SuperMetalPrice Commentary:

The Middle East conflict has exposed the vulnerability of global metals supply chains. Tungsten’s record highs reflect both defence demand and geopolitical risk. Shipping disruptions, freight spikes, and export controls may sustain elevated prices across multiple strategic metals. Investors and industrial buyers should monitor trade flows, particularly for critical minerals supporting military and battery technologies, as long-term volatility may persist.