Xianglu Expands Tungsten Wire Production in China

Tungsten Wire

Surge in Tungsten Wire Output

China’s Xianglu Tungsten has significantly expanded its production of super-fine tungsten wire at its Chaozhou facility in Guangdong province. The plant is now producing 500mn meters of wire per month, targeting an annual capacity of 30bn meters that was first outlined in September 2023. This rapid scale-up underscores Xianglu’s growing role as a leading supplier of downstream tungsten products.

The expansion has already impacted the company’s financial results. Revenues for January–March rose 4.2% year on year to 481mn yuan ($66.9mn). More notably, revenue from the tungsten wire segment surged sevenfold, though the company did not disclose the exact figure. Demand is being driven by the photovoltaic sector, where fine tungsten wire is used as a cutting tool for silicon wafer slicing.

Market Impact and Price Influence

Tungsten wires totaling 100mn meters typically consume about 4t of tungsten concentrate, highlighting Xianglu’s role as a major consumer of feedstock. Alongside peers Xiamen Tungsten and Zhangyuan Tungsten, Xianglu’s bi-monthly bidding prices significantly influence spot tungsten markets. Collectively, term contracts from these firms account for 60–70% of China’s tungsten feedstock demand, according to industry estimates.

In June, Xianglu raised its bid prices to Yn171,000/t for 50% wolframite concentrate and Yn251,000/t for APT, reflecting increases of Yn8,500/t and Yn9,500/t respectively. Xiamen Tungsten also lifted APT bids to Yn250,000/t, reinforcing an upward trend in feedstock prices. These price moves suggest sustained strength in demand, even as downstream industries navigate broader economic pressures.

The Metalnomist Commentary

Xianglu’s tungsten wire expansion highlights the intersection of renewable energy growth and raw material demand. As photovoltaic installations surge, tungsten’s strategic role is intensifying. With pricing power concentrated in a few Chinese firms, global buyers remain highly exposed to policy, energy, and cost dynamics within China’s tungsten industry.

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 prices surge on solar, superalloy and defense demand

Tungsten

China tungsten prices surge on unexpectedly strong prompt buying. China tungsten prices surge as APT and concentrate jump in late August. As a result, China tungsten prices surge while spot trades clear well above term bids.

Spot tightness and term contracts diverge

Prices for 65% wolframite hit Yn252,000–262,000/t on 28 August. They rose from Yn234,000–236,000/t on 26 August. That is up 32% in August and 86% year-to-date. APT 88.5% rose to Yn360,000–380,000/t ex-works. It climbed from Yn340,000–350,000/t over the same period. Producers in Jiangxi and Hunan ran at low rates to honor term contracts. Suppliers reported thin inventories and began withholding sales. Spot deals cleared at Yn380,000–400,000/t for APT this week. Doped tungsten powder traded near Yn600/kg for superalloys.[Price Link: https://supermetalprice.com/]

Demand spikes across solar, tools, and defense

Solar glass, cutting tools, and superalloy buyers drove the rally. Market participants urged quick purchases to avoid higher costs tomorrow. Key state-linked groups floated August APT bids at Yn305,000–340,000/t. These levels sat far below active spot prints. Term volumes still covered roughly 80% of liquidity. However, immediate needs and investor buying set marginal prices. China’s defense procurement lifted cemented tools and AP core plans by 42%. That signaled firm tungsten pull from military channels.

Meanwhile, Li-ion and solar supply chains expanded tungsten use. Tungsten wire for silicon slicing may consume 4,500t in 2025. That rises from 2,000–3,000t in 2023–2024. Battery applications added about 1,500t over the past year. That total rose 22% year on year. These shifts increased sensitivity to short-term tightness. Therefore, small inventory gaps triggered rapid price jumps.

Supply constraints and medium-term outlook

Resource depletion and mining limits constrained feed. New large mines remain years away. The Dahutang project holds 1.21mn t of WO₃ reserves. It is unlikely to start before three years from now. Prices may stabilize or soften after restocking. That depends on whether prompt demand cools. Yet long-term fundamentals still look firm. China plans major infrastructure, nuclear, and grid projects. The Xinjiang–Tibet railway also supports metal intensity.

The Metalnomist Commentary

The spread between spot APT and state-linked term bids underscores scarcity at the margin. If defense and solar orders persist, pullbacks may prove shallow. Watch Dahutang timelines and export policies; absent new supply, volatility should remain elevated.

Vedanta Expands Metals Exploration Across India to Secure Critical Minerals

Vedanta

Multi-state exploration strengthens Vedanta’s role in clean energy supply chains

Vedanta expands metals exploration across six Indian states in a strategic push to secure critical minerals essential for clean energy technologies. The company is targeting copper, nickel, cobalt, vanadium, tungsten, chromium, and PGEs in regions including Maharashtra, Rajasthan, Bihar, Arunachal Pradesh, Karnataka, and Chhattisgarh. This initiative aligns with India’s growing focus on mineral self-sufficiency and value chain localization.

Auction wins and value-added aluminum investment boost vertical integration

In the fourth round of India’s critical mineral auctions, Vedanta secured four mineral blocks. These include vanadium and graphite in Arunachal Pradesh, and a polymetallic block with cobalt, manganese, and iron in Karnataka. Its subsidiary Hindustan Zinc (HZL) also won two tungsten blocks in Andhra Pradesh and Tamil Nadu. Alongside exploration, Vedanta is expanding downstream capabilities—targeting over 90% value-added aluminum output through investments in billets, foundry alloys, rolled products, and wire rods.

Zinc alloy innovation and aluminum capex signal industrial diversification

HZL is diversifying zinc use cases beyond steel galvanization by launching a 30,000-tonne zinc alloy facility. Meanwhile, Vedanta is investing $1.5 billion to expand aluminum smelting and rolling capacity, including a major upgrade at its Odisha plant. These developments aim to deepen Vedanta’s footprint in aerospace, defense, solar, EVs, and battery infrastructure—critical to India's low-carbon ambitions.

The Metalnomist Commentary

Vedanta’s aggressive critical mineral exploration and aluminum investments reflect India’s urgent drive to localize energy transition supply chains. With a diversified portfolio and state-backed auction wins, Vedanta is positioning itself as a key pillar in India's clean energy industrial ecosystem.