Tungsten Prices Hit Record Highs as China Export Curbs and Defense Demand Tighten Global Supply

Tungsten prices have surged to record levels as China tightens export controls and defense-sector demand rises, putting more pressure on already limited global supply. The sharp rally focuses on ammonium paratungstate (APT), a key intermediate in tungsten processing. This price movement highlights growing strain across aerospace, defense, and industrial supply chains.

With China maintaining dominance over global tungsten production and trade policy becoming increasingly restrictive, market participants are now reassessing long-term supply security. In particular, this concern is growing as Western economies attempt to diversify critical mineral sourcing.

China Tightens Control Over Global Tungsten Supply Chain

China is the main power in the tungsten market, with a large share of global mining and processing. In 2025, Beijing set stricter export rules for tungsten and also cut mining limits, showing a more tight supply system.

More limits came when officials reduced export access for selected firms for 2026–2027. This step lowered the number of allowed exporters to just 15 companies. Also, export bans on dual-use goods linked to military supply chains raised worries about supply in global markets.

These policy steps quickly affect prices. APT prices in Rotterdam rose above $3,000 per metric ton, up more than 200% since the start of the year. Low supply and strong buying activity in industrial metals markets drive this rise.

Defense Demand Reshapes Tungsten Consumption Outlook

Tungsten is a key material for aerospace and defense uses because it is very hard and can withstand extreme heat. Manufacturers use it widely in armor-piercing ammunition, turbine parts, and high-performance industrial tools.

Defense demand now accounts for about 12% of global tungsten use, and this share will likely rise toward 15% by 2027–2028 as military stockpiling accelerates. Industry forecasts also show defense demand rising at about 8% each year. This growth is outpacing many traditional industrial sectors.

At the same time, the automotive sector remains the largest consumer, accounting for approximately 25%–30% of tungsten demand. However, the gradual shift toward electric vehicles may alter long-term consumption patterns, particularly in components requiring tungsten-based wear-resistant materials.

Supply Diversification Efforts Remain Limited

Efforts to reduce dependence on Chinese tungsten supply are gradually emerging but remain constrained by time and capital intensity. The United States currently has no active commercial tungsten mines. Although several projects are under development, none have a confirmed production timeline.

Outside China, new capacity is slowly coming online. Almonty Industries has begun mining operations at its South Korean tungsten project, with Phase 2 expansion expected around 2027. This represents one of the few significant non-Chinese supply additions in the global pipeline.

However, even with new projects, analysts estimate the global tungsten market at around 129,000 metric tons in 2025. Thus, there is limited room for supply shocks without significant price volatility.

Market Impact

○ Impacted Metals: Tungsten, ammonium paratungstate (APT), tungsten carbide, ferrotungsten

○ Direction: Bullish

○ Time Horizon: Near-term to 2027–2028

○ Affected Industries: Aerospace, defense manufacturing, automotive, industrial tooling, electronics, mining

○ Related Price Reports: Tungsten Weekly Price Report

○ Watch Item: Monitor whether China further restricts tungsten export licensing or expands dual-use controls beyond current designated entities.

SuperMetalPrice Commentary:

Tungsten is rapidly transitioning from an industrial niche metal into a strategic defense-linked material, with China’s export policy acting as the dominant pricing driver. The combination of constrained supply and structurally rising military demand is tightening the market faster than new capacity can respond.

Unless non-Chinese production expands more quickly than currently projected, tungsten pricing is likely to remain highly sensitive to policy decisions out of Beijing rather than traditional demand cycles.