Tungsten prices hit 12-year high on China’s limits

European tungsten prices have surged to their highest level since 2013, driven by China’s tightening grip on critical mineral exports and rising demand from sectors like electronics, defence and renewable energy.

Tungsten concentrate in China has climbed 26% to about $20,400 per tonne this month from $16,200 per tonne in January, according to the Shanghai Metals Market. The concentrate is 65% tungsten trioxide (WO₃).

The price of ammonium paratungstate (APT)—a key intermediate used in tungsten metal production—has climbed to $400 per tonne on the European spot market, marking an 18% jump since February, according to Reuters.

The price spike follows a series of Chinese export curbs and quota reductions on key strategic metals, including tungsten, tellurium, molybdenum, bismuth, and indium. These measures, imposed in retaliation to U.S. tariffs earlier this year, have exacerbated global supply concerns.

China dominates global tungsten production, supplying over 80% of the world’s total 81,000 tons output.

With the highest melting point of any element, the metal it is extremely hard, dense, and exhibits excellent electrical and thermal conductivity. Once used to light homes through incandescent bulbs, it now underpins essential industries from aerospace and semiconductors to defense and drilling.

Tungsten carbide, for example, is second only to diamond in hardness and plays a vital role in metalworking tools and industrial drills. Tungsten crucibles enable the melting of other high-temperature materials. Meanwhile, the military relies on the metal for “penetrators”—armor-piercing projectiles now in high demand amid the ongoing war in Ukraine.

Scarcity

Tungsten’s scarcity is worsening. China’s first tungsten ore mining quota for 2024 was set at 58,000 tons—a 6.5% decrease from the previous year. Traders were relying on scrap supplies, but now those are depleting, Oliver Friesen, CEO of Guardian Metal Resources, told Reuters.

The United States halted commercial tungsten mining in 2015 and is heavily reliant on imports. Plus, the U.S. military has vowed to eliminate purchases of tungsten mined or processed in China or Russia. The country at war with Ukraine is the world’s third-largest producer.

However, Almonty Industries (TSX: AII) announced an offtake agreement last week to provide tungsten oxide exclusively for U.S. defence applications. The company operates tungsten mines in Spain, Portugal and South Korea. Still the company says it’s not enough to meet total American demand. 

Shares of Almonty have gained more than 140% this year to $2.45 apiece on Friday in Toronto, valuing the company at $709 million.