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.

Trinity Tungsten Drilling Campaign Targets Larger Rwanda Supply Base

Trinity, Rwanda

Trinity tungsten drilling has begun at the Nyakabingo mine in Rwanda as the company works to expand one of Africa’s largest tungsten deposits. The campaign is designed to confirm deeper mineralised vein extensions and support long-term mine sustainability.

Trinity tungsten drilling is strategically important because tungsten supply is increasingly tied to defence, aerospace, cutting tools, electronics and energy applications. Rwanda’s role could grow if Nyakabingo moves from semi-industrial production toward full-scale operations.

Trinity tungsten drilling will target depths of about 850m from the surface. The company may consider additional exploration across the licensed area depending on drilling results.

Nyakabingo currently produces 100-110 t/month of wolframite grading 66-70% tungsten. The deposit hosts an estimated 115,502t of recoverable tungsten, with further resource potential at depth.

Nyakabingo Expansion Strengthens African Tungsten Supply

Nyakabingo has been active since the 1930s, making it a long-established tungsten operation with renewed strategic relevance. The current drilling campaign aims to extend the mine’s resource base and support future output growth.

This matters because tungsten supply chains remain narrow and strategically sensitive. Buyers in defence and advanced manufacturing need stable, traceable and qualified sources of tungsten-bearing material.

Trinity is expanding resources while scaling mining and processing capacity. That combination is important because additional reserves only create supply value if mining and processing systems can handle higher output.

The company is also positioning itself for downstream value addition. This reflects a wider shift in critical minerals, where producing countries and miners increasingly want to capture more value beyond raw concentrate.

Rwanda could benefit from that trend. Tin, tungsten and tantalum are all strategically important minerals, and Trinity’s operations give the country a stronger role in supply chains linked to electronics, industrial tools and defence materials.

Wolframite Processing Upgrade Reduces Scale-Up Risk

Trinity recently commissioned a 5 t/hr pilot plant to test an improved wolframite processing flowsheet. The pilot plant is intended to bridge the gap toward a planned 60 t/hr facility under study.

This step is commercially important. Processing performance will determine recovery, concentrate quality, operating costs and the ability to scale output reliably.

The company also installed a closed-loop water treatment system. That supports environmental management and could help improve operating resilience as mining and processing expand.

Trinity has an offtake agreement with US-based Global Tungsten & Powders, while Traxys handles deliveries. This gives the company an established route into international tungsten markets.

The offtake structure also links Rwanda’s tungsten output to western supply-chain security. Global Tungsten & Powders is a key downstream player, and its relationship with Trinity gives Nyakabingo additional strategic relevance.

Trinity’s broader portfolio includes tin and tantalum production from the Rutongo and Musha mines. Rutongo produces 40-70 t/month of tin, while Musha produces 30-40 t/month.

The expansion at Nyakabingo therefore fits a larger critical minerals platform. Trinity is not only developing tungsten. It is building a tin, tungsten and tantalum supply base with growing relevance to electronics, defence and industrial manufacturing.

The Metalnomist Commentary

Trinity’s drilling campaign shows that African tungsten supply could become more important as western buyers seek diversified sources. The real test will be whether Nyakabingo can convert deeper resources and pilot processing into reliable full-scale output.

GTP Tungsten Oxide Stockpile Expansion Strengthens US Defense Supply

GTP Tungsten & Powders

GTP tungsten oxide stockpile plans will expand US access to one of the most strategically sensitive defense metals. Global Tungsten and Powders plans to raise tungsten oxide production capacity at its Towanda, Pennsylvania, plant to about 12,000 t/yr.

The GTP tungsten oxide stockpile will support US defense and critical industries, with initial deliveries expected later this year. The company did not disclose the exact volume dedicated to the reserve.

The GTP tungsten oxide stockpile is significant because tungsten is essential for armour-piercing ammunition, aircraft engine components, electronics, hard metals and other high-performance applications. Defence currently accounts for about 10% of global tungsten demand, but that share is rising as military budgets expand.

GTP, part of Austria’s Plansee group, already has around 10,000 t/yr of tungsten oxide capacity, although output can vary by about 15% depending on operating conditions. The planned expansion would give the US a stronger domestic platform for strategic tungsten oxide supply.

Recycling-Based Supply Supports Traceability and Security

The stockpile will use tungsten oxide sourced from recycled scrap and concentrates. This structure is important because US strategic materials procurement increasingly requires clear sourcing, traceability and supply-chain security.

Recycling is already central to GTP’s Towanda operation. Recycled material accounted for the majority of supply in 2025, when the plant recorded a recycling rate of 90%.

This gives the project a stronger compliance profile. Tungsten supply chains are exposed to geopolitical risk, concentrated processing and origin scrutiny, so recycled feedstock can help reduce dependence on higher-risk primary sources.

Tungsten recycling also supports industrial resilience. Scrap recovery can preserve valuable metal units inside the US system while reducing exposure to foreign concentrate availability.

For defense users, the key requirement is not only tonnage. They need reliable, traceable and qualified material that can be converted into powders, carbides, alloys and components without supply interruption.

The Towanda expansion therefore addresses a strategic gap. It does not only increase tungsten oxide capacity; it creates a more controlled domestic reserve tied to recycled and traceable inputs.

Stockpiling Moves From Emergency Buffer to Industrial Tool

Plansee US Holding has formed a joint venture with Manhattan Five to establish the stockpile. Manhattan Five will oversee warehousing, logistics and long-term asset management, while Plansee will lead production growth and supply.

The structure separates metal production from storage and asset management. That distinction matters because strategic stockpiles require more than buying material. They need inventory systems, logistics, inspection, rotation policies and long-term custody control.

The Defense Logistics Agency manages strategic and critical material procurement for the National Defense Stockpile. This system supports military and federal customers that need access to critical materials during supply disruptions.

The GTP project aligns with broader US priorities and could qualify for support from the Department of Defense, Department of Energy or the Export-Import Bank of the United States.

Washington is also preparing Project Vault, a proposed $12bn critical minerals stockpile for US manufacturers. The programme would be funded by $2bn in private capital and a loan.

The broader policy direction is clear. The US is moving from passive dependence on global tungsten markets toward active supply-chain positioning through stockpiles, domestic processing, recycling and public-private financing.

For tungsten markets, this could tighten competition for clean feedstock, especially recycled scrap and compliant concentrates. It may also raise the strategic value of processors that can meet US sourcing and traceability rules.

The Metalnomist Commentary

GTP’s tungsten oxide expansion shows that US stockpiling is becoming more industrially sophisticated. The strategic advantage will come not from holding material alone, but from linking stockpiles to recycling, domestic processing and qualified defense supply chains.

Tungsten Offtake Deal Strengthens EQ Resources’ Role in Tight Western Supply Chains

EQ Resources

Tungsten offtake deal activity is accelerating as Western buyers seek secure supply in a market facing concentrate shortages and sharp price increases. EQ Resources binding agreement with Traxys highlights how tungsten has moved from a niche industrial metal into a strategic supply-chain concern for Europe, North America, and advanced manufacturing sectors.

The Australian producer will sell 3,500 t/yr of tungsten oxide in concentrate to Traxys for five years. Pricing will follow ammonium paratungstate indexes, giving the agreement direct exposure to a market that has rallied sharply over the past year. EQ Resources estimates the deal at A$678mn, or about $479mn.

The tungsten offtake deal also includes a €15mn prepayment that will support refinancing of EQR’s Saloro mining complex in Spain. This matters because European tungsten supply has become increasingly important as buyers face limited concentrate availability and rising concerns over Chinese export restrictions on downstream tungsten products.

Traxys Agreement Supports Saloro Financing and Market Access

The Traxys agreement gives EQ Resources a stronger commercial platform for its tungsten output. Offtake deals are especially important in tight specialty metal markets because they can support financing, improve customer visibility, and reduce marketing risk for producers.

Saloro remains a key asset in this strategy. The Spanish operation gives EQR exposure to European tungsten production at a time when the region is trying to strengthen local and allied supply chains. However, Saloro’s production fell by 13pc year on year in July-September because of declining ore grades, showing that asset optimisation remains critical.

EQR used the quarter to improve ore processing and concentrator plants at Saloro. These upgrades are important because tungsten concentrate supply is not only about mine ownership. It also depends on recovery performance, grade management, processing efficiency, and the ability to deliver consistent concentrate quality into long-term contracts.

Tungsten Price Rally Raises Strategic Value of Concentrate Supply

The tungsten offtake deal comes during an exceptional rally in ammonium paratungstate prices. Super Metal Price assessed tungsten APT at $1,700–1,900/mtu in-warehouse Rotterdam, up by about 390pc from a year earlier. That surge reflects a critical shortage of tungsten concentrates in Europe and tighter availability of downstream tungsten products.

Chinese export restrictions have added pressure to the market. Tungsten is essential for cutting tools, hard metals, defence systems, mining equipment, aerospace components, and high-temperature industrial applications. Any disruption in concentrate or intermediate product availability can quickly affect manufacturing supply chains.

EQR has already built a wider offtake base. The company previously agreed to supply tungsten concentrate to Asian, North American, and European producers, and also signed a five-year offtake deal with US producer Elmet Technologies. The Traxys agreement strengthens that pattern and reinforces EQ Resources’ position as a relevant non-Chinese tungsten supplier.

The Metalnomist Commentary

Tungsten is becoming a clear example of how specialty metals can move from overlooked inputs to strategic bottlenecks. The Traxys-EQR deal shows that secure concentrate access, financing, and processing reliability now matter as much as headline mine capacity.

Japan Tungsten Plant to Cut Sumitomo Electric’s Reliance on China

Sumitomo Electric

Japan tungsten plant investment by Sumitomo Electric Industries will expand domestic tungsten powder capacity and strengthen Japan’s critical mineral supply chain. The company plans to build a new facility in Toyama city with about ¥15.9bn, or $100mn, in investment.

The new plant will be operated by group company Allied Material and is scheduled to start operations in the first half of fiscal 2028. Sumitomo Electric said the project will expand its tungsten supply capacity by around 50%.

Japan tungsten plant development matters because tungsten is essential for cemented carbide cutting tools, semiconductors, electronic components and advanced industrial manufacturing. The investment also reflects Tokyo’s wider effort to reduce exposure to China-dominated critical material supply chains.

Tungsten Powder Capacity Supports High-End Manufacturing

The Toyama facility will expand production capacity for tungsten powder near Sumitomo Electric’s existing plant. The company has not yet disclosed the precise capacity of the new line.

Tungsten powder is a key input for cemented carbide tools used in metal cutting and precision machining. These tools support automotive, aerospace, electronics, machinery and industrial equipment production.

The material also has strategic relevance in semiconductors and electronic components. This makes tungsten more than a tooling metal; it is part of the materials base behind advanced manufacturing and technology supply chains.

Japan Backs Domestic Recycling and Supply Security

The Japanese government will cover about ¥7.5bn of the investment through a subsidy aimed at securing critical mineral supply chains. This public support shows that tungsten is now treated as a strategic industrial material.

Global tungsten supply remains heavily dependent on China. Sumitomo Electric said it currently relies on China for about 30% of its tungsten imports.

The new Japan tungsten plant will help the company strengthen its domestic recycling system and gradually reduce that dependence. Recycling will be especially important because secondary tungsten can improve supply resilience without relying only on new mined material.

The Metalnomist Commentary

Sumitomo Electric’s investment shows that tungsten security is becoming a manufacturing competitiveness issue. Japan is not only adding capacity; it is building a recycling-backed buffer for cutting tools, semiconductors and advanced components.

Tungsten Market Faces Disruptions as China Imposes Export Controls on APT

Ammonium Paratungstate

The recent announcement by China to place ammonium para-tungstate (APT) and tungsten concentrate under strict export controls has sparked significant price increases in the European market. As buyers scramble to secure material, European consumers are seeking to build "safety stocks" to ensure supply continuity amid the uncertainty surrounding these export restrictions.

China's Export Controls Create Supply Chain Concerns

China's decision to add APT and tungsten concentrate to its list of dual-use items has left global tungsten buyers on edge. With this new regulation, Chinese suppliers have hesitated to provide fresh price quotes, waiting for clearer instructions and permits from the Chinese government. This delay in pricing is expected to persist for around 45 days, further exacerbating concerns in the tungsten market.

As the export controls limit available material, European and Japanese markets are expected to feel the greatest impact. While U.S. buyers primarily rely on tungsten scrap for their needs, prices for this resource are also expected to rise due to the overall global tightness in tungsten supply. European buyers are particularly active in sourcing material outside of China, not due to increased demand, but to secure stock ahead of anticipated supply disruptions.

Verification of End-Use Creates Delays and Bottlenecks

The new export regulations require Chinese exporters to notify authorities of the final end-user and application of the tungsten products, adding another layer of complexity to the supply chain. The verification process, which ensures that the material isn't being used for military purposes, is expected to create significant delays. With approximately 70% of Japan's tungsten imports coming from China, these controls are likely to disrupt the Japanese market the most. The European Union also faces similar challenges, with imports from China making up a substantial portion of its tungstate needs.

Impact on Global Markets and Price Forecasts

While the Chinese export restrictions are expected to drive prices up, particularly in Europe and Japan, the full impact remains uncertain. Tungsten is crucial for a variety of industrial applications, with APT serving as the intermediate material for producing tungsten oxides and powders. However, with limited available stock and supply chain disruptions, some market participants worry that the price increases could become more drastic.

The situation has drawn comparisons to China's antimony export delays, which have significantly disrupted the European market and caused prices to surge. The tungsten market may face similar challenges as supply becomes even more constrained, with both APT and tungsten concentrate prices continuing to climb.

Conclusion: A Fragile Market with Rising Prices

As the global tungsten market grapples with China's export controls, prices for APT and tungsten concentrates are likely to remain volatile. The duration and enforcement of these new controls will determine the severity of the price hikes, and the market will need time to adjust to the changing dynamics. With Europe and Japan facing the most significant challenges, the tungsten supply chain will need to adapt to avoid further disruption.

China’s policies are reshaping the global tungsten market

International Tungsten Industry Association

China’s tightening controls are fundamentally reshaping the global tungsten market and forcing buyers to rethink supply strategies. The global tungsten market now faces record prices, acute shortages outside China and rising geopolitical risk. As a result, investors and consumers across the global tungsten market are reassessing where to source and where to deploy capital.

China’s export controls on ammonium paratungstate (APT) and tungsten trioxide have sharply reduced export availability. At the same time, China’s surging appetite for tungsten concentrates has deepened shortages in Europe and other consuming regions. Therefore, tungsten prices have climbed to record levels in both APT and concentrate markets.

Meanwhile, import data show that China has become an aggressive buyer of concentrates, with first-half 2025 imports up 75pc year on year. This shift has pushed European and Japanese buyers to pursue alternative strategies, including buying concentrates instead of APT and intensifying recycling and non-Chinese partnerships.

Supply shock exposes vulnerabilities in the global tungsten market

China accounts for roughly 80pc of global APT supply and is now exporting far less material. Since Beijing expanded its export licence regime in February, APT exports dropped by 42pc in January-June 2025 versus a year earlier. Similarly, exports of tungsten trioxide fell by 76pc, leaving European consumers scrambling for units.

As a result, European APT prices have surged to fresh highs of $580–645/mtu duty unpaid Rotterdam. This represents a roughly 20pc increase since the start of the year and a jump from $550–600/mtu only days earlier. European tungsten concentrate prices have followed, rising to $500–520/dmtu in-warehouse Rotterdam, up nearly 30pc year on year.

Consequently, downstream consumers and midstream processors are re-engineering their sourcing models. Buyers are shifting from APT to concentrates where possible and are strengthening ties with alternative suppliers such as Vietnam. Meanwhile, Japanese buyers are boosting recycling rates and deepening co-operation with smelters in Germany and the US to reduce exposure to China.

However, traders find themselves squeezed as limited material flows directly to end users. Many trading houses are sidelined in spot activity and instead look to position themselves with long-term strategies and optionality. This structural shift underlines how fragile and concentrated current tungsten supply chains remain.

Uncertain outlook complicates investment in non-Chinese tungsten projects

On paper, today’s high prices and tightness strongly support new western tungsten projects. Yet equity and debt investors remain wary about whether current conditions in the global tungsten market are durable. Many tungsten mining projects are years from production, and investors fear that a shift in Chinese policy could quickly loosen fundamentals.

Geopolitics further clouds the investment case. The evolving US-China trade conflict and Europe’s position “in the middle” both influence tungsten flows but do not offer clear long-term signals. The US is accelerating efforts to secure domestic supply and support new mines, while Europe is also expected to attract investment as it seeks strategic autonomy. Still, long-term policy direction remains uncertain.

At the same time, Chinese producers stress that tightness reflects genuine domestic demand, not a short-term export tactic. China’s industrial strategy has moved from low-cost manufacturing toward high-value sectors such as photovoltaics. Forecasts suggest tungsten-wire demand from the PV sector could grow 40–50pc annually over the next five years, requiring around 8,000t of tungsten by 2027.

Therefore, it appears unlikely that China will import large volumes of concentrates only to flood European markets later. While China clearly has the ability to do so, conference participants see that scenario as implausible given the strength of its internal consumption. For now, the base case is high but stabilising prices, with the next few months likely to shape long-term procurement and investment decisions.

The Metalnomist Commentary

China’s gradual pivot from “world’s tungsten factory” to voracious downstream consumer is forcing a structural repricing of risk. For miners and financiers outside China, the challenge is to move before the window closes, yet not overbuild into a market still governed by Beijing’s policy choices. Buyers who secure diversified, traceable tungsten supply now may find that this period of pain ultimately buys them strategic resilience.

China Tungsten Exports Resume in Europe with Limited Volumes

China Tungsten

China tungsten exports restarted in European markets for the first time since February stoppages, though shipment volumes remain constrained at maximum 1 tonne per delivery. The resumption of China tungsten exports follows months of supply disruption caused by Chinese export controls announced February 4th, creating acute shortages for US and European buyers dependent on tungsten ingots for defense and industrial applications.

Small-Scale Shipments Signal Cautious Market Re-entry

China tungsten exports currently originate primarily from smaller state-owned manufacturers rather than major producers. Market sources report receiving new shipments in Rotterdam while additional material remains in transit to European destinations. However, volumes stay extremely limited compared to pre-control periods, reflecting continued regulatory uncertainty and cautious export policies from Chinese suppliers.

Meanwhile, delivery timelines extend significantly with current orders potentially shipping in July for immediate purchases. Traders quote current prices at $56 per kilogram on a cost-insurance-freight basis, representing substantial increases from historical levels. The extended lead times demonstrate supply chain disruptions that persist despite the resumption of limited export activities.

Export Controls Create Ongoing Market Uncertainty

However, tungsten metal products face complex regulatory environments despite not appearing on initial dual-use licensing lists. While other tungsten products required explicit export licenses from February 4th, tungsten ingots experienced de facto export halts through administrative restrictions. This regulatory ambiguity creates persistent uncertainty for international buyers seeking reliable supply sources.

Therefore, US and European buyers continue struggling to secure sufficient alternative tungsten sources outside Chinese production. The global tungsten market's dependence on Chinese suppliers becomes evident through months of supply shortages following export control implementation. Alternative sourcing efforts prove inadequate for meeting industrial demand requirements across defense and manufacturing sectors.

Tight European Market Maintains Price Pressure

Furthermore, European tungsten markets remain extremely tight with minimal warehouse inventory available for immediate delivery. Limited stock levels mean small resumptions in Chinese exports cannot immediately relieve price pressures or supply constraints. Market participants describe conditions as "total lottery" scenarios where securing tungsten ingots depends largely on timing and supplier relationships.

As a result, prompt tungsten prices maintain elevated levels despite the resumption of small-scale Chinese shipments. The constrained supply environment supports premium pricing while buyers compete for limited available material. Industrial consumers face continued procurement challenges that affect production planning and cost structures across tungsten-dependent manufacturing sectors.

The Metalnomist Commentary

China's limited tungsten export resumption highlights the persistent vulnerability of global supply chains dependent on single-source suppliers for critical materials, particularly when geopolitical tensions influence trade policies. The constrained volumes and regulatory uncertainty demonstrate how export controls can fundamentally reshape commodity markets, forcing Western buyers to reassess supply security strategies for defense-critical materials like tungsten.

Pioneer Minerals Springfield Tungsten Project Targets US Critical Minerals Supply

Pioneer Minerals

Pioneer Minerals Springfield tungsten project development has advanced after the Australian critical minerals explorer signed a non-binding MOU with Mineral Technologies to assess tungsten processing in Idaho. The agreement will evaluate whether tungsten concentrate can be commercially produced from ore and tailings at the site.

The Pioneer Minerals Springfield tungsten project could offer a near-term staged pathway to production if processing tests confirm viable recovery. The work will focus on technical programmes designed to assess mineral processing, concentrate quality and project development potential.

The Pioneer Minerals Springfield tungsten project is strategically relevant because US tungsten supply has tightened following Chinese export controls introduced in February 2025. Tungsten remains essential for defense, aerospace, electronics, cutting tools, hard metals and other high-performance industrial applications.

Tungsten Processing Tests Could Unlock Ore and Tailings Value

Pioneer Minerals and Mineral Technologies will assess the feasibility of producing tungsten concentrate from both ore and tailings at Springfield. This approach could improve project economics by recovering value from previously mined or stockpiled material.

Tailings recovery is especially important in critical minerals because it can reduce development timelines, lower mining intensity and make use of material already available at the site. If successful, it could support a faster route to domestic tungsten supply than a conventional greenfield mine.

The companies will also evaluate gallium mineralisation and potential recovery at the site. Gallium adds strategic value because it is used in semiconductors, optics, defense systems and advanced electronics, while non-China supply remains limited.

China Controls Raise US Tungsten Security Concerns

China remains the dominant tungsten producer, accounting for about 79% of global mined output in 2025. Its export controls, combined with declining ore grades, have increased pressure on US supply chains.

The US Geological Survey has identified tungsten as essential for economic and national security, and the metal remains on the US critical minerals list. This status could strengthen the case for government support as Pioneer prepares funding applications for domestic critical mineral production.

Pioneer’s plan fits Washington’s broader effort to rebuild critical minerals capacity through mining, processing, recycling and advanced materials projects. The main challenge will be converting technical studies into a reliable concentrate supply route that can meet industrial and defense specifications.

The Metalnomist Commentary

Pioneer’s Springfield project shows how tungsten security is becoming a processing and recovery challenge, not only a mining issue. If ore, tailings and gallium recovery can be integrated, the site could become a small but strategically useful addition to the US critical minerals chain.

Tungsten West Requires $93M to Restart Hemerdon Mine Amid Supply Crunch

Tungsten West

UK Miner Seeks Financing as Global Tungsten Prices Surge

Tungsten West requires $93M to restart Hemerdon mine, targeting a 2026 relaunch amid tightening global tungsten supplies. The UK-based company detailed its plans to recommence production at the Hemerdon site in Devon, home to the world’s third-largest tungsten deposit. The total estimated cost excludes financing charges, with the company aiming to secure funding by the end of 2025.

Tungsten West is currently in talks with government-backed agencies in the UK, US, and EU, alongside specialist mining investors, tungsten intermediaries, and end-users. The mine is projected to produce 332,000 metric tonne units (mtu) of tungsten trioxide and 462 tonnes of tin annually over an initial 11-year span, with an additional four years of processing stockpiled material. Although the project was originally slated to restart in 2021, inflation and permitting delays pushed the timeline back.

Supply Shortages and Chinese Export Restrictions Drive Urgency

The decision comes amid tightening global tungsten supply, with prices sharply rising in response to falling inventories and limited Chinese exports. Since February, Beijing has expanded export licence requirements, further restricting global access to tungsten. As a result, European tungsten concentrate prices surged this week to $330–350/dmtu, up over 30% from January’s $260–270/dmtu levels—marking the highest since the benchmark’s inception in 2017.

Meanwhile, European APT prices climbed to $410–430/dmtu, with critically low stockpiles exacerbating upward pressure. As Tungsten West requires $93M to restart Hemerdon mine, the company positions itself as a vital alternative source for downstream consumers increasingly exposed to price volatility and supply chain risk.

The Metalnomist Commentary

Tungsten West’s financing push is timely and strategically critical. With China tightening control over exports and European inventories dwindling, the Hemerdon mine could become a cornerstone in rebalancing Western tungsten supply chains—if capital is secured before market constraints worsen.

Japan tungsten recycling expansion accelerates after China export controls

the International Tungsten Industry Association(ITIA)

Japan tungsten recycling expansion is now central to the country’s response to China’s new export controls. Japan has no domestic tungsten mines and historically relied on Chinese APT and cemented carbide imports. As a result, Japan tungsten recycling expansion is becoming the primary lever to secure supply and stabilise its hard-metal value chain. Japan tungsten recycling expansion also reflects a broader shift toward circularity and strategic raw material resilience.

Scrap flows highlight the scale of Japan tungsten recycling expansion

Japan is ramping tungsten scrap utilisation to compensate for lower Chinese export volumes. The country generates 3,500–4,000t of tungsten scrap annually, with about half recycled domestically and half exported. However, Japan also imports 500–1,000t of scrap each year, underscoring its dependence on global recycling networks.

China’s export controls on APT and cemented carbide have sharply reduced shipments into Japan. No other producing country has fully offset this loss, creating a structural shortfall in virgin tungsten materials. Therefore, Japanese industry is pushing harder to capture and process scrap from cutting tools and hard-metal components.

Scrap exports to overseas processors have also surged as part of this adjustment. From April to June, Japan exported 865t of tungsten scrap, double the previous quarter. Much of this material goes to the US, Germany and Taiwan for conversion into tungsten carbide powder. Meanwhile, limited domestic processing capacity means Japan must then reimport refined powders or finished tools.

Japan lacks tungsten recycling capacity comparable to leading manufacturing countries such as Germany. Market participants agree that higher prices and strong scrap demand create a window to invest in domestic plants. Companies like Mitsubishi Materials and Sumitomo Group are intensifying recycling efforts, but significant capacity additions will take time to materialise.

Strategic impact of Japan tungsten recycling expansion on supply security

Japan tungsten recycling expansion carries important strategic implications beyond near-term supply balancing. By strengthening domestic scrap processing, Japan can reduce exposure to Chinese export policies over the medium term. At the same time, enhanced recycling supports national goals on circular economy and lower carbon metal supply.

Industry leaders emphasise that Japan still needs a framework for constructive cooperation with China. However, they also stress that recycling will play a growing role in any long-term procurement strategy. As a result, Japan tungsten recycling expansion is viewed as both a defensive and forward-looking move. It protects critical industries today while aligning with future ESG requirements.

Higher tungsten prices and constrained primary supply should continue to incentivise investment in collection, sorting and processing infrastructure. Tool manufacturers and end-users will likely see tighter take-back schemes and more advanced recycling logistics. In five to ten years, today’s disruption may be remembered as the catalyst that forced Japan to build a more robust, diversified tungsten procurement system.

The Metalnomist Commentary

Japan’s response to China’s tungsten export controls shows how quickly advanced manufacturing economies can pivot toward recycling when supply shocks hit. If current investment momentum holds, Japan could evolve from a largely import-dependent buyer into a more balanced scrap-and-powder hub. Market participants should watch where new recycling plants are sited and how quickly domestic processing capacity closes the gap with Germany and other leaders.

Mt Carbine Tungsten Mine Expansion Targets Higher Australian Supply

EQ Resources

Mt Carbine tungsten mine operator EQ Resources has approved a A$39mn expansion that will double ore crushing capacity at its Queensland operation. The investment comes as tungsten prices remain elevated following Chinese export controls and stronger global defence demand.

Mt Carbine tungsten mine crushing capacity will increase from 1mn t/yr to 2mn t/yr. EQR expects the project to come online in the January-March quarter of 2027.

Mt Carbine tungsten mine expansion will address the main processing bottleneck at the operation. Additional crushing capacity will allow EQR to process more low-grade stockpiled ore and increase tungsten recovery from material already available at the site.

The company expects the project to add 500 metric tonne units per year of tungsten trioxide output. One mtu represents 10kg of 100% tungsten trioxide content.

Crushing Expansion Unlocks Existing Tungsten Feedstock

Crushing capacity has constrained Mt Carbine’s ability to increase processing volumes. Doubling capacity gives EQR a relatively direct route to higher output without relying entirely on new mine development.

The project will particularly improve access to low-grade stockpiles. This is important because higher tungsten prices can make previously marginal material increasingly economic to process.

EQR plans to fund the expansion through existing cash reserves and expected cash flows from tungsten trioxide sales. The company therefore avoids depending entirely on new external financing for the project.

The economics have improved dramatically as tungsten prices have risen. European ammonium paratungstate prices recently reached around $3,000/mtu, up 590% from a year earlier.

Chinese export controls introduced in February 2025 have been a major driver. Tight Chinese domestic supply and rising defence demand have further strengthened the market.

Tungsten is strategically important because of its hardness, heat resistance and high density. It is used in cutting tools, aerospace components, electronics and defence applications.

Offtake Agreements Secure Routes for Additional Supply

EQR does not expect to rely on a conventional spot market for additional tungsten trioxide output. The company said incremental production will instead move through existing offtake agreements.

Traxys has an agreement covering 3,500 t/yr, while US tungsten manufacturer Elmet Technologies has secured an undisclosed quantity.

EQR has also signed agreements with five undisclosed tungsten manufacturers across Asia, North America and Europe. These contracts cover a combined 9,400t of 50% grade tungsten concentrate over two years.

This diversified offtake structure is strategically significant. Tungsten markets are relatively small and specialised, making long-term customer relationships more important than highly liquid spot trading.

The agreements also connect Australian tungsten production directly with processing and manufacturing customers across several regions. That strengthens Mt Carbine’s role as a non-China tungsten source.

With Chinese export controls increasing procurement risk, western manufacturers are placing greater value on diversified and contractually secured supply. Mt Carbine is positioned to benefit from that shift if EQR completes its expansion on schedule.

The Metalnomist Commentary

Mt Carbine shows how high tungsten prices are making existing stockpiles and brownfield expansions more valuable. EQR’s real strategic advantage is the combination of available feedstock, secured offtake and growing demand for non-China tungsten.

EU Tungsten Prices Surge Amid Tight Supply and China Export Controls

EU Tungsten Scrap

Export Restrictions and Low Inventories Drive Up Tungsten Prices in Europe

European tungsten prices have surged to multi-year highs due to restricted supply, dwindling inventories, and newly imposed Chinese export controls. The Focus Keyphrase "EU tungsten prices" has gained attention from global buyers navigating a market reshaped by policy shifts and geopolitical uncertainty.

European tungsten concentrate prices are now $310–320/dmtu in Rotterdam warehouses, up from $260–270/dmtu in early January — the highest level since the index’s launch in 2017. This price rally stems from low inventories and tightening global supply, particularly as China has lowered its tungsten mining quota and extended export licensing to include more products.

Western Buyers Lock in Long-Term Contracts Amid Risk

Western buyers are responding to this supply disruption by securing multi-year offtake deals. According to Australia-based producer EQ Resources, these contracts often include large prepayments to hedge against delays in Chinese export licence approvals.

Meanwhile, the defense sector's growing demand for tungsten is driving further contract activity. Almonty Industries, for instance, has signed a multi-year agreement to supply tungsten oxide to U.S.-based TPW for military applications. These agreements underscore the metal's strategic importance and the urgency among buyers to secure long-term supply.

However, some traders question how long the upward momentum can last. While markets like Vietnam remain willing to pay premium prices, others find current rates difficult to accept.

APT Prices Rise as Chinese Controls Disrupt Market

The price of ammonium paratungstate (APT), a key tungsten intermediate, has also spiked. European APT prices now range between $395–405/dmtu, a 20% increase since January and the highest since 2013. China’s restrictions have further worsened European availability, leading to extremely low warehouse stock levels.

As a workaround, some buyers have started importing ammonium tungstate (ATM), which is not currently subject to export controls. Although ATM cannot be converted into oxide, it is usable in limited applications. Industry sources caution that ATM could be restricted if the trade environment worsens.

Adding to the cost pressure, concentrate payables have jumped to 80–85% of APT price, up from the typical 70%, reflecting the sharp increase in feedstock costs.

The Metalnomist Commentary

EU tungsten prices are being reshaped not just by market forces, but by geopolitics. With China tightening control over its critical minerals, Western buyers are being pushed into a new era of strategic procurement. As APT and concentrate prices continue to climb, Europe’s reliance on Chinese tungsten remains a vulnerability — one that may prompt diversification strategies and renewed investment in local supply chains.

ReElement tungsten deal deepens US–Uzbek strategic metals ties

Tungsten

The ReElement tungsten deal creates a new supply route for high-purity tungsten into the US market. Under the agreement, American Resources (AREC) will source tungsten concentrate from Uzbek miner TMK for refining by ReElement and other US processors. This structure supports US efforts to secure critical minerals outside traditional supply hubs.

The partnership positions the ReElement tungsten deal at the intersection of upstream mining and advanced refining technologies. TMK will provide concentrate while ReElement applies its refining capabilities to deliver high-purity tungsten products. As a result, US manufacturers in aerospace, defense, energy and hard-metal tooling gain an alternative source for one of the most strategic refractory metals.

Critically, the ReElement tungsten deal aligns with broader US policy to diversify supply chains. Tungsten remains vital for armor-piercing munitions, cutting tools and high-temperature alloys. Therefore, long-term, multi-party collaborations like this one can reduce exposure to geopolitical risk and price shocks in tungsten markets.

Beyond tungsten: pathway to germanium, lithium and rare earths

The agreement also lays groundwork for future cooperation in germanium, lithium and rare earth elements. ReElement has signalled that the ReElement tungsten deal is only the first step in a wider strategic partnership with TMK and Uzbekistan. This could eventually extend into a multi-metal platform for critical minerals.

Germanium and rare earth elements are central to semiconductors, optics and permanent magnets, while lithium underpins global battery supply chains. By starting with tungsten and then expanding scope, the parties can test logistics, quality and financing frameworks before scaling into other sensitive metals. As a result, this phased approach lowers execution risk while still supporting long-term diversification goals.

Uzbekistan trade deal provides political and financial tailwind

The ReElement tungsten deal also benefits from a supportive diplomatic backdrop. The US and Uzbekistan recently signed a broader trade and economic agreement, under which Tashkent plans to invest and purchase around $35bn in key US sectors over three years. This political framework should ease regulatory processes and encourage additional capital flows into mining and refining projects.

For Uzbekistan, TMK’s partnership with ReElement and AREC showcases its ambition to move deeper into global critical minerals supply chains. Meanwhile, US stakeholders gain access to new Central Asian resources without fully depending on legacy suppliers. If successfully implemented, the partnership could become a model for similar deal structures across other critical minerals.

The Metalnomist Commentary

This agreement illustrates how mid-tier refiners like ReElement are becoming pivotal in rewiring critical mineral supply chains. Starting with tungsten, the partnership could mature into a broader multi-metal bridge between US technology sectors and Central Asian resources. Market participants should watch how quickly the parties move from concentrate shipments to scalable, multi-metal offtake platforms.

Almonty Tungsten Oxide Supply for US Defense Strengthens Critical Mineral Chain

Tungsten Parts Wyoming

Strategic Agreement Secures Domestic Defense Supply

Almonty Industries has signed a binding deal to supply tungsten oxide for US defense programs through Tungsten Parts Wyoming (TPW). The agreement ensures a monthly minimum of 40t of tungsten oxide for three years, reinforcing North America's critical mineral security. The agreement includes a hard price floor and automatic annual renewal, though pricing details remain undisclosed.

Multi-National Processing and Supply Chain

TPW will send the tungsten oxide to Metal Tech, an Israeli processor, for conversion into tungsten metal powder. Processing will occur in Israel or the US, after which the powder will feed into TPW’s products used in US military programs. These include tungsten super shot, blasting media, and specialized components for defense-grade applications.

Sandong Mine to Anchor Long-Term Supply

Tungsten oxide deliveries will begin once Almonty launches commercial-scale output from its Sandong mine in South Korea. The mine targets 2.3mn t/yr of oxide in its first phase, with nearly half committed to US-based Global Tungsten & Powders. Almonty also signed an offtake agreement with South Korea’s SeAH for all molybdenum output from the same project.

The Metalnomist Commentary

This deal marks a critical step toward onshoring and diversifying tungsten supply chains for US defense. As geopolitical risks mount, multi-national processing and guaranteed offtakes offer essential redundancy and resilience.

Zhangyuan Tungsten Sales Rise as Manufacturing Demand Supports Downstream Products

Zhangyuan Tungsten

Zhangyuan tungsten sales increased in 2025 as robust manufacturing demand lifted shipments of tungsten powder, tungsten carbide and cemented carbide products. The Chinese producer sold 4,928t of tungsten powder during the year, up 24% from 2024.

Zhangyuan tungsten sales also rose across higher-value downstream products. Tungsten carbide sales increased by 18% to 5,812t, while cemented carbide sales climbed by 20% to 1,363t.

Zhangyuan tungsten sales show that demand for cutting tools, industrial components and hard materials remained firm even as raw material prices corrected from record highs. The result highlights the importance of downstream tungsten products in China’s manufacturing supply chain.

Cemented carbide bar sales rose by 16% to 893t. Cemented carbide cutter sales also recovered strongly, reversing a 3% decline in the first half of 2025 to end the year up 22% at 27.11mn pieces.

Downstream Capacity Outpaces Internal Concentrate Supply

Zhangyuan has significant downstream tungsten capacity. The company has nameplate capacity of 12,000 t/yr of ammonium paratungstate, 15,000 t/yr of tungsten powder and 13,000 t/yr of tungsten carbide.

That scale makes the company a major consumer of tungsten raw materials. Its own tungsten concentrate output is not enough to meet internal demand, so it relies on external feedstock including APT and tungsten concentrate.

Zhangyuan produced 3,691t of tungsten concentrate in 2025, down slightly by 48t from a year earlier. This small decline reinforces the company’s dependence on purchased raw materials to support its downstream operations.

The operating structure matters because tungsten producers with strong downstream demand still face raw material exposure. Concentrate and APT availability can affect margins, procurement timing and product pricing.

Tungsten is strategically important for cemented carbide tools, drilling equipment, machining, aerospace, defence, electronics and high-performance industrial applications. Stronger sales from Zhangyuan therefore reflect continued demand from China’s manufacturing base.

Price Correction Slows Feedstock Buying After Record Highs

Zhangyuan lowered its term bidding price for 55% tungsten concentrate to 845,000 yuan/t for the second half of April, down from 930,000 yuan/t in the first half of the month. Its APT bidding range also fell to 1.35mn yuan/t from 1.44mn yuan/t.

The move reflected a wider correction in China’s tungsten market. Prices for 65% wolframite concentrate fell sharply after reaching record highs in March, while APT prices also declined over the same period.

Market participants reported limited spot deals and fewer term deliveries. Buyers slowed feedstock purchases because they expected further downward price corrections after the earlier price surge.

This creates a short-term tension in the tungsten chain. Downstream demand remains supported by manufacturing activity, but raw material buyers are cautious because prices moved too far too quickly.

For Zhangyuan, the key challenge is balancing strong downstream sales with disciplined feedstock procurement. If raw material prices continue to fall, margins may improve for processors that avoid overbuying at peak levels.

The broader market signal is clear. Tungsten demand remains industrially strong, but price volatility can disrupt buying behaviour across the concentrate, APT, powder and carbide chain.

The Metalnomist Commentary

Zhangyuan’s results show that China’s tungsten demand is being driven by downstream manufacturing, not only raw material speculation. The price correction may cool feedstock buying, but cemented carbide and cutting tool demand still point to tungsten’s strategic role in industrial production.

EQ Resources Secures Global Offtake Deals Amid Tightening Tungsten Supply

EQ Resources

Australia's Leading Tungsten Producer Signs 9,400t Supply Contracts Across Asia, North America, and Europe

EQ Resources Expands Global Tungsten Reach

Australian-listed tungsten producer EQ Resources (EQR) has signed five major offtake agreements totaling 9,400 tonnes of 50% grade tungsten concentrate over two years. These deals span key markets, with 50% of the material going to Asia, and the remaining split evenly between North America and Europe.

EQR did not name the buyers but confirmed on 19 March that they are all leading manufacturers in the tungsten industry. These strategic agreements will bolster EQR’s global footprint at a time of mounting supply chain risks.

EQR Adds Value with Ferro-Tungsten Production

This is not EQR’s first offtake success. In September 2024, the company secured a five-year supply contract with Elmet Technologies, a US-based manufacturer. Additionally, EQR acquired Tungsten Metals in November 2024, gaining control of a 4,000 t/yr ferro-tungsten facility. This vertical integration enhances EQR’s ability to deliver processed tungsten alloys directly to customers.

These moves come as China, the world’s largest tungsten supplier, introduced export restrictions in February in response to rising US tariffs. EQR’s ability to secure multi-region supply deals highlights its growing strategic importance outside China’s tungsten ecosystem.

Almonty tungsten plant funding accelerates Sangdong build and U.S. defense supply

Almonty

Almonty tungsten plant funding reached $90mn in its Nasdaq debut. Almonty tungsten plant funding will prioritize the Sangdong tungsten oxide facility. The company sold 20mn shares on 14 July. Meanwhile, proceeds will also support working capital.

Sangdong focus and defense offtake

The funding accelerates construction of the Sangdong tungsten oxide facility. Almonty holds a binding supply deal with Tungsten Parts Wyoming. The agreement targets domestic defense applications for tungsten oxide. Therefore, the project strengthens U.S. tungsten supply-chain resilience.

Market outlook and corporate positioning

Demand for tungsten in defense and technology is rising. As a result, offtake visibility and pricing stability could improve. The company is shifting its incorporation to the United States. Meanwhile, it operates projects in South Korea, Portugal, and Spain. Investors view Almonty tungsten plant funding as a lever to diversify supply.

The Metalnomist Commentary

Almonty’s equity raise ties capital to near-term processing capacity and long-term defense demand. Execution now depends on plant delivery, oxide qualification, and steady feedstock. Watch construction milestones and contract ramp with TPW.

Almonty Montana tungsten project strengthens US critical minerals supply

Almonty Industries

Almonty Montana tungsten project will strengthen US tungsten supply as the company acquires Gentung Browns Lake in Montana. The asset ranks among the most advanced undeveloped US tungsten projects, according to Almonty Industries. As a result, the deal positions Almonty as a key North American tungsten concentrate supplier.

Strategic acquisition terms and project timeline

Almonty Industries will acquire Gentung Browns Lake for $9.75mn in a combined cash and share transaction. The package includes $750,000 in cash and $9mn in Almonty shares, aligning seller incentives with long-term project success. However, the relatively modest entry cost underscores the value upside if tungsten prices tighten.

Almonty expects production at the Almonty Montana tungsten project could begin as early as the second half of 2026. This timing would place new US tungsten output into the market amid ongoing concerns about Chinese supply dominance. Therefore, the project fits broader US and allied efforts to diversify strategic metals sourcing.

Permits, infrastructure and processing advantages

The acquisition also includes plant permits, water rights and tungsten processing equipment from a Montana-based operator. These assets shorten the development timeline and can lower initial capital intensity for the Almonty Montana tungsten project. Meanwhile, existing permits reduce early-stage regulatory risk, always a critical factor for US mining projects.

Almonty plans to use the acquired equipment to process ore from Gentung Browns Lake once mining starts. Integrating permits, water rights and processing infrastructure allows a more streamlined ramp-up path. As a result, the project can move faster from feasibility work to cash-generating tungsten concentrate production.

The Metalnomist Commentary

This move confirms Almonty’s strategy to build a multi-asset tungsten portfolio anchored in OECD jurisdictions. For the US, incremental output from Montana will not replace Chinese supply, but it will matter for defense and high-performance alloy chains. Investors should watch how Almonty sequences capex and offtake deals as tungsten regains attention as a strategic metal.

Tight Supply to Underpin the China Tungsten Market Until 2027

Tungsten

The China tungsten market will stay tight through 2027 as supply lags demand. Production cuts at large mines have reduced domestic feedstock while end markets expand. As a result, prices rose sharply this year and may remain firm until new capacity arrives. China’s tungsten concentrate output fell to 153,200t WO₃ equivalent in 2024 from 178,500t in 2022. Meanwhile, demand climbed to 257,400t in 2024 after 247,300t in 2023, leaving a large deficit covered by imports and scrap. Analysts at the Suzhou industry conference said the China tungsten market should avoid a major pullback before 2027. They noted that relief will likely come only when new large mines start up.

Supply gap persists until new mines start in 2027

Conference speakers highlighted a stubborn supply gap and slow project timing. They expect about 20,000 t/yr of concentrate additions from Dahutang, Bobai Judian and a Shizhuyuan upgrade, but only from 2027. Therefore, the China tungsten market will likely rely on imported concentrate and more scrap recovery. Producers have already rationed APT availability and favored term contracts. Traders reported tight spot liquidity and cautious offers as prices adjusted upward through August.

Demand broadens across high-tech and special steel, but cost risks rise

Downstream demand remains robust in nuclear, military, solar, chips, aviation and new energy. These sectors value tungsten’s high density and extreme melting point. Special steel consumes about 18% of tungsten and may grow 3% as mills pivot from commodity grades. However, ferro-tungsten costs have jumped with feedstock prices. Consequently, mills could test partial substitution to manage input inflation, which may trim tungsten intensity at the margin. Even so, speakers expect structurally strong use in precision tooling, superalloys and solar glass cutting.

The Metalnomist Commentary

Pricing power rests on sustained deficits until 2027 project starts. Watch APT contract terms, scrap flows, and military and solar glass orders for near-term direction. If ferro-tungsten costs stay elevated, special steel substitution could cap further upside yet keep prices supported.