Acute Tungsten Shortage Drives Record Prices Across Global Supply Chains

Tungsten

The acute tungsten shortage is pushing global tungsten prices to record highs in 2026. Supply remains extremely tight across concentrate, APT, and downstream products. Low inventories and restricted Chinese export licences are worsening the squeeze. As a result, the acute tungsten shortage is becoming one of the most severe specialty metals disruptions in the market.

The current problem starts at the raw material level. Global production of tungsten concentrates has declined, while available western supply remains far below demand. Market participants now describe an estimated shortfall of around 13,000t of contained tungsten in the western market. Therefore, the acute tungsten shortage is no longer a regional issue. It is a structural supply crisis.

Pricing shows how quickly the market has tightened. Tungsten concentrate prices in Rotterdam surged to record levels in late January. European APT prices also climbed sharply as concentrate costs and export restrictions combined. Consequently, global tungsten prices are rising across the entire value chain.

Chinese Supply Constraints Are Tightening the Tungsten Concentrate Shortage

Chinese supply constraints remain the core driver of the tungsten concentrate shortage. China produces about 80pc of global tungsten supply and still dominates export availability. However, domestic ore shortages have intensified after mine shutdowns and weak new project development. Meanwhile, China’s 2025 mining quota fell from the previous year.

Trade data reinforces that tightening pattern. Chinese exports of tungsten concentrate declined sharply in 2025, while Chinese imports rose strongly. That means even China is pulling in more raw material to support its own processing base. As a result, less material is reaching overseas buyers.

APT export licences have added another bottleneck. Western customers may secure limited licences, but actual shipment still depends on concentrate availability. That creates a second layer of uncertainty on top of already weak feedstock supply. Therefore, the tungsten concentrate shortage is now feeding directly into delayed APT deliveries and higher prices.

Consumers are also paying much more for feedstock. Payables for concentrate have risen sharply as buyers compete for scarce supply. That shift reflects a market where sellers hold stronger leverage and buyers have fewer alternatives. Consequently, procurement conditions are becoming more difficult even for experienced consumers.

Japan and Europe Face Growing Pressure as Recycling Lags Demand

Japan and Europe are now feeling the full pressure of the acute tungsten shortage. Europe faces critically tight APT availability because it depends heavily on Chinese supply and licensing. Japan faces similar pressure after new Chinese restrictions on dual-use exports added more uncertainty. Therefore, both regions are competing harder for a smaller pool of material.

Japan’s position is especially sensitive. The country has no domestic tungsten mining base and depends heavily on imported tungsten products. Buyers are now seeking tungsten-containing scrap, but that market is also tight. As a result, recycling cannot yet solve the immediate supply problem.

Recycling capacity may grow, but it will take time. Japan is expanding tungsten recycling capability in response to lower Chinese exports. However, significant new output will not arrive quickly. Meanwhile, downstream consumers still need metal today, not years from now.

This means the market will likely remain strained for some time. Concentrate shortages, limited export licences, and weak scrap availability are all reinforcing one another. Therefore, the acute tungsten shortage is likely to keep global tungsten prices elevated unless primary supply improves materially.

The Metalnomist Commentary

Tungsten is now showing how vulnerable specialty metal supply chains become when one country dominates both mining and exports. This market is not just tight. It is structurally exposed. Unless new western supply or faster recycling emerges, tungsten buyers may face prolonged price pressure and continued allocation risk.