China Restrictions Lead to Tungsten Supply Crunch

---

Written by Brian Ford, Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

---

Summary

Tungsten prices rocketed to record highs in recent months, largely as a result of China's market grip on the metal.

---

A Tight Squeeze

Chinese export restriction have led to skyrocketing prices of tungsten-based materials across the globe in recent months, causing problems for manufacturers of products containing the metal. Prized for its hardness and extreme heat resistance, tungsten is used in a wide variety of products, including aerospace and military applications (such as armor-piercing shells). But it also is used in civilian products such as semiconductors, oil and gas equipment and tools.

Investment research firm The Oregon Group reported in April that tungsten prices had surged to record levels, with Rotterdam APT (ammonium paratungstate) trading at US$3,185 per metric ton unit, up 350% year-to-date and nearly 900% over 12 months. APT is a raw material used in the production of tungsten products.

According to Industrial Info Resources data, there are 70 active capital tungsten ore mining projects globally, with a total investment value of US$6.9 billion. By world region, Asia leads with 37 projects worth US$2.88 billion, followed by Oceania with 11 projects worth US$1.73 billion. North America comes in third with 10 projects worth US$1.28 billion. Subscribers to the Industrial Info Resources Global Market Intelligence (GMI) Metals & Minerals Project Database can view a list of detailed reports on all of the projects.

By country, Australia is in first place with 10 projects valued at US$1.73 billion, followed by China with 18 projects valued at US$1.6 billion, and Kazakhstan with 14 projects valued at US$1 billion.

The U.S. has seven projects valued at US$522 million, but currently has no commercial tungsten mines in operation.

China accounted for nearly 80% of the 85,000 metric tons produced globally last year, according to news accounts citing the U.S. Geological Survey. The country implemented stringent curbs on tungsten exports beginning last year, sparking a drastic rise in prices.

China said in December 2025 it would allow only 15 firms to export tungsten in 2026-2027, according to Reuters. The country also had cut mining quotas for 2025.

Earlier this year, China placed export controls on duel-use items (those with both military and civilian applications) to Japan, including tungsten products.

Also, the U.S. and Israel's conflict with Iran has greatly lowered munitions, which is putting pressure on tungsten supplies.

On top of all that, the U.S. plans to bar Chinese, Russian, Iranian and North Korean tungsten from key U.S. defense applications as of January 1, 2027.

Several countries are scrambling to lock down alternative sources of the metal. The European Union has shortlisted tungsten and other critical minerals for its first coordinated stockpile to reduce dependence on Chinese imports.

As part of the U.S. drive to source more tungsten from outside of China, on March 16, global miner Almonty Industries Incorporated announced the completion of Phase I commissioning at its Sangdong Tungsten Mine in Gangwon Province, South Korea, marking its return to production after more than 30 years.

Phase I is designed to handle about 640,000 tonnes of ore annually, yielding roughly 2,300 tonnes of tungsten concentrate per year. GMI subscribers can view a detailed project report.

Almonty Chief Executive Officer Lewis Black said in a press release that the project "will directly support U.S. defense procurement requirements mandating non-China tungsten sourcing after 2027 and significantly enhance resource security for the U.S. and its allies."

The Sangdong Mine was one of the world's largest tungsten producers before operations were suspended in the early 1990s following a prolonged downturn in commodity prices, according to Almonty, which acquired the project in 2015.

In April, Almonty said it was relocating its headquarters from Toronto, Canada, to Dillon, Montana, reflecting its "continued strategic alignment with the United States and its role in supporting secure, transparent, and Western-aligned supply chains for critical materials."

Montana is the home of Almonty's Gentung Tungsten Project. According to Industrial Info Resources data, the Gentung project represents $32 million in total installed value, scheduled for fourth-quarter 2027 completion. Full project details are available to IIR subscribers.

Tungsten Diplomacy

In a CNBC interview on Thursday, Black said that while governments are "are happy to have handbag fights over lithium or rare earths," the tungsten market "was always very sensitive, because how do you even advertise you have a problem without telling your adversaries that you don't have enough?"

China's grip on the raw tungsten market is 30 years in the making, Black continued.

"This hasn't been a nefarious attempt to destroy Western industry; this has been a way of capturing market share," he said.

China's dominance over the market represents just the first phase of its plans, he added, with the next phase being its control of the finished tungsten products market.

"We fervently believe in our sector, but you'll never see Chinese raw materials return to the market," Black said. "What you are going to see next is phase two of the program, because this is not ideology, this is just business, (and) now they're going to offer finished components."

Key Takeaways

• China accounted for nearly 80% of the 85,000 metric tons of tungsten produced globally last year.
• China's export restrictions have caused tungsten prices to skyrocket.
• In response, several tungsten mining projects are being developed outside China.

---

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).