Tungsten prices have been steadily rising for over a month, driven by significant supply-side constraints at the mine end. As of mid-July 2025, Ammonium Paratungstate (APT), a key benchmark, hovers around $460-$485 per Metric Tonne Unit (MTU), reflecting a notable 3.48% surge in just the past month. Tungsten concentrate prices have seen an even sharper increase, up approximately 25% since the beginning of the year, signaling a market bracing for sustained tightness.
The global tungsten market has witnessed a remarkable ascent in prices over the past several months, marking a significant shift driven by persistent supply-side constraints. This upward trajectory is not merely a fleeting fluctuation but reflects deeper structural changes in the global supply-demand balance.
Tungsten prices have been steadily rising for over a month, with a notable surge of 3.48% in the past month alone as of July 17, 2025. This increase significantly exceeds typical seasonal patterns, which usually see a 1.2-1.8% rise during the second and third quarters of the year as manufacturing activity accelerates. The current magnitude of the price movement suggests a fundamental shift beyond ordinary market cycles, indicating that underlying supply constraints are exerting a more profound influence than seasonal demand fluctuations. This suggests that the market may be midway through a longer-term uptrend, following a major trough in 2020 during pandemic-related industrial slowdowns. This pattern implies that current elevated prices could represent a new, higher baseline rather than a temporary spike, necessitating a re-evaluation of tungsten's market value by market participants.
The current tightness at the mine level is attributed to a combination of several interconnected factors that have created a challenging environment for tungsten supply. First and foremost, there has been a notable reduction in output from major producers. In 2024, global tungsten production reached approximately 98,000 metric tons, but China reported a concerning 12% year-over-year decline in its production figures for the second quarter of 2025. Additionally, significant production drops have been witnessed outside of China, notably at Vietnam's Nui Phao mine, one of the largest tungsten operations in the world, where output fell by 30% in the same quarter following extensive environmental audits. Russia, recognized as the third-largest producer, has also contributed to these declines, resulting in a global supply crunch that is becoming increasingly severe.
Another crucial factor is the implementation of stricter environmental and export regulations in China. The revised "Mineral Resources Law of the People's Republic of China," effective July 1, 2025, classifies tungsten as a strategic mineral resource. This law establishes a protective mining system and mandates that mining right holders conduct ecological restoration of mining areas, thereby increasing production costs. Consequently, many small and medium-sized mines in regions like Jiangxi and Hunan have been compelled to suspend or reduce production due to non-compliance or prohibitive transformation costs, further tightening the circulation of available spot goods. Moreover, in February 2025, China put in place new export controls on tungsten and several other rare metals, reshaping global trade patterns and significantly limiting the availability of intermediate tungsten products. Environmental compliance costs, coupled with a preference for domestic consumers in the new export licensing system, have curtailed outbound tungsten flows significantly. The output from Chinese mines had already fallen by 4.6% in 2023, and continued mining quotas in 2024 further exacerbated the situation.
The depletion of older high-grade tungsten deposits and the lack of new major mines are additional concerns. There is a growing scarcity of high-grade tungsten deposits, typically classified as those containing over 0.6% WO₃, and the development of new mines encounters significant hurdles, such as lengthy development timelines of 5-7 years and high upfront capital costs. Financial backing for these new projects has remained cautious, with few junior companies able to attract capital without securing prior offtake agreements. The historical price collapse between 2011 and 2015 has deterred exploration investments and led to the shuttering of many projects, resulting in a thin pipeline of potential new projects despite the current bullish pricing trends. While South Korea's Almonty's Sangdong mine is expected to contribute around 7% of global supply when it ramps up in 2025-2026, it will not be sufficient to offset broader supply constraints.
Finally, disruptions related to labor or logistics have also been noted. Processing bottlenecks are evident due to the 3-5 week cycles needed to convert tungsten ore to ammonium paratungstate (APT), compounded by environmental restrictions that have led to temporary operational halts. Although specific labor strikes impacting tungsten mines are not detailed, labor actions are highlighted as an important market indicator to keep an eye on.
In the backdrop of all these factors, geopolitical tensions are significantly influencing the market dynamics. The US Department of Defense, for instance, plans to phase out the procurement of Chinese and Russian tungsten by 2027, alongside raised tariffs on Chinese tungsten products by 25%, which took effect on January 1, 2025. These explicit policies are part of a broader trend toward supply chain de-risking among Western nations, suggesting that the demand for tungsten sourced from non-Chinese and non-Russian suppliers will intensify. This shift is expected to create a premium for diversified and secure supply chains while accelerating investments in alternative sources. Alternative primary sources and domestic recycling and refining capabilities to build resilience.
Tungsten plays a vital role across various high-tech industries, largely due to its remarkable properties. In the defense and aerospace sectors, it is essential for the manufacturing of armor-piercing projectiles, missile components, turbine parts, and aircraft balance weights. Its contribution to electric vehicles is also significant, as it is utilized in high-performance brake systems, turbochargers, electrodes, and motor systems, enhancing both safety and efficiency.
In the semiconductor industry, tungsten is critical for filaments, electrodes, and managing heat in advanced chip manufacturing processes, thereby supporting ongoing trends in miniaturization. Moreover, in heavy tooling, tungsten forms the backbone of cutting tools, drill bits, mining equipment, and industrial machinery, and is highly valued for its exceptional wear resistance. Its unique attributes also make it indispensable in additive manufacturing, where it continues to find innovative applications. Make it valuable in emerging 3D printing applications for specialized components.
The tightening primary supply has inevitably shifted market dynamics, placing greater emphasis on secondary sources, particularly tungsten scrap. Recycled tungsten currently fulfills a significant portion of global demand, accounting for approximately 37% of supply. As prices climb, the economic incentive to process and reintroduce scrap into the supply chain intensifies. This makes metal recyclers increasingly pivotal in balancing the market and mitigating price volatility. Strategic stockpiling by end-users and investors, alongside increased investment in domestic refining and recycling capabilities, are also becoming critical strategies to secure supply amidst escalating prices.
Amidst these market shifts, companies like Quest Metals offer vital solutions for industries looking to optimize their tungsten supply chain and capture hidden value. Quest Metals specializes in the assessment, sorting, and refining of various forms of tungsten scrap, including turnings, tool inserts, carbide drill bits, and other industrial byproducts. By providing expert validation, efficient processing, and comprehensive management of import/export, Quest Metals enables manufacturers and other industries to convert their tungsten waste streams into valuable assets. Partnering with a reputable recycler like Quest Metals not only helps industries capture significant value from their scrap but also plays a crucial role in securing a reliable and sustainable tungsten supply in a volatile market.