In a year marked by significant disruptions in the global supply chain, tungsten prices have climbed to unprecedented levels, driven by a combination of Chinese export restrictions and increasing industrial demand. This surge has put pressure on manufacturers worldwide who rely on this critical metal for a range of applications.
Recently, tungsten prices have surged, with ammonium paratungstate (APT), a key form of processed tungsten, hitting record highs. In China, prices are reported at $1,125 to $1,150 per metric ton unit (mtu), while in Rotterdam, prices have reached around $1,100 per mtu. Market speculation suggests these prices will continue to rise in the coming weeks.
China, the dominant player in the global tungsten market, implemented export controls in February 2025, significantly reducing its export volume. In January 2026 alone, Chinese export controls led to a 40% year-on-year decline in exports, according to William Parry-Jones of Wolfram Advisory. This move has exacerbated global supply shortages, as other major tungsten-producing nations, such as Vietnam, Russia, and a few European countries, collectively produce only a fraction of China’s output.
The Chinese government has centralized control over tungsten exports by limiting the number of companies permitted to trade the metal internationally, further tightening the global supply chain. This has created a ripple effect across the global market, driving price increases and complicating procurement strategies for international buyers.
The supply constraints and soaring prices have had several repercussions on global manufacturing and trade. The limited availability of tungsten is expected to significantly increase industrial production costs, particularly in sectors such as aerospace and defense, which are major consumers of tungsten products. Many companies are now facing the challenge of securing tungsten supplies amidst fears of continued price hikes.
According to recent data from the Shanghai Metal Market (SMM), scheelite concentrate prices in China have surged by over 50% year to date, indicating widespread inflationary pressures in the market. This price escalation has been further intensified by pre-Chinese New Year demand, as enterprises stockpile materials to offset anticipated post-holiday supply disruptions.
The European tungsten raw material market is experiencing a unique challenge. Despite price rises, actual trading activity remains low due to the scarcity of local spot materials and the high prices charged by Chinese exporters. Meanwhile, in India, robust domestic demand has driven up tungsten scrap prices, a trend that could soon influence European markets.
Looking ahead, the tungsten market is expected to maintain its upward trajectory in the short term, as supply tightness and Chinese export controls persist. Analysts are closely monitoring several factors that could influence market dynamics post-Chinese New Year, including global manufacturing trends, potential easing of supply constraints, and changes in Chinese export policies.
Manufacturers and market participants are urged to remain vigilant regarding ongoing fluctuations and potential market risks associated with high prices and a restricted supply environment. Continuous updates and strategic adjustments will be necessary to navigate these challenges in the evolving tungsten landscape effectively.