Chinese buyers are aggressively pursuing tungsten scrap supplies across the United States, triggering record-breaking price spikes in the global market. This competitive surge follows a period of constrained mine output and heightened demand from essential sectors including aerospace, defense, and industrial manufacturing. As global supply remains tight, the battle for tungsten—a critical mineral essential for armor-piercing ammunition and high-performance tooling—has intensified, with US scrap dealers reporting premiums reaching up to five times historical norms.
Supply Scarcity and Market Dynamics
China, which historically dominates the global tungsten market, has shifted its internal strategy by implementing strict mining quotas. This policy has compelled Chinese domestic users to seek alternative supply routes, including the procurement of scrap from Western markets. Market data indicates that tungsten scrap prices have surged by 350% since May 2025, significantly outpacing the price growth of primary tungsten metal. While China maintains prohibitions on direct tungsten scrap imports for environmental reasons, intermediate processing in secondary hubs like Taiwan, Vietnam, and South Korea continues to facilitate flow into the global supply chain.
Strategic Importance and Defense Needs
Tungsten is a vital component in modern defense systems, including missiles and mining equipment, making its reliable supply a national security priority for Washington.
China implemented export controls on related products last year. This has heightened the urgency for Western nations to diversify their supply chains. The US government is now exploring strategic investments in international projects. For example, it is considering funding mining operations in Kazakhstan. These efforts aim to mitigate risks from an over-reliance on a single dominant source.
As domestic recyclers face increased competition, the competition for secure, secondary sources of tungsten is expected to remain high.
Market Impact
○ Impacted Metals: Tungsten scrap, Ammonium paratungstate (APT)
○ Direction: Bullish
○ Time Horizon: Medium-term
○ Affected Industries: Aerospace, defense, industrial tooling, mining equipment manufacturing
○ Related Price Reports: Tungsten Weekly Price Report
○ Watch Item: Monitor any new trade policy adjustments or export control updates from Washington regarding critical minerals and secondary metal exports.
SuperMetalPrice Commentary:
The intense bidding war for US tungsten scrap highlights the fragility of global critical mineral supply chains. As long as China maintains its production quotas and export controls, Western scrap markets will likely continue to experience volatility as buyers scramble to secure essential feedstock for high-tech and defense applications.
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