Tungsten Prices Surge as Export Controls and Military Demand Drive Record Rally

Tungsten Prices Surge Amid Supply Tightness and Export Restrictions

Tungsten prices surge across global markets as supply tightens and geopolitical tensions escalate. The strategic metal now outperforms many major commodities.

According to pricing data from Fastmarkets, the European ammonium paratungstate benchmark reached about $2,250 per metric ton unit. Tungsten prices surge more than 557 percent since China introduced export controls in early 2025.

Beijing added several tungsten products to its export control list during a trade dispute with the United States. As a result, global buyers rushed to secure alternative supply sources.

Meanwhile, growing geopolitical tensions and military demand accelerate the rally. Buyers now deplete inventories as supply chains tighten.

Military Demand Accelerates the Tungsten Prices Surge

Military demand now plays a critical role in the tungsten prices surge. Defense manufacturers require tungsten for armor-piercing weapons, aircraft counterweights, and missile components.

Analyst George Heppel from BMO Capital Markets describes the current tungsten market as extremely tight. He notes that few new projects exist to increase supply quickly.

The ongoing conflict in the Middle East also intensifies supply concerns. Researcher Janine Le Roux at Project Blue expects military-related tungsten demand to rise about 12 percent this year.

Defense sectors rely heavily on tungsten alloys. These alloys support aircraft systems, artillery shells, and advanced ammunition.

Global Supply Chains Struggle to Replace Chinese Tungsten

Global supply chains struggle to replace Chinese production as tungsten prices surge further. China dominates both tungsten reserves and mining output.

Data from the U.S. Geological Survey shows China produced about 79 percent of global tungsten supply last year. This dominance created strong dependence among Western manufacturers.

Companies now seek alternative sources outside China. For example, Almonty Industries plans to restart production at a mine in South Korea. The firm also develops a new tungsten project in the United States.

However, analysts say new Western mines require years to scale production. Meanwhile, limited liquidity in the tungsten market amplifies price volatility.

SuperMetalPrice Commentary:

Tungsten now stands at the center of global critical mineral competition. Export controls, defense demand, and supply concentration continue to reshape the market. China’s dominance exposes structural weaknesses in Western supply chains. Unless new mines emerge quickly, tungsten prices will likely remain volatile as geopolitical tensions drive strategic metal demand.