Tungsten, a crucial material in drilling equipment and armor-piercing weaponry, has seen its value more than double this year, with prices rising 557% since Beijing implemented export controls on certain tungsten products in February last year. This surge, bringing prices to $2,250 per metric ton unit according to the APT European benchmark from Fastmarkets, is primarily driven by a squeeze on supplies due to Chinese export restrictions and heightened military demand globally. The commodity has outpaced gains in gold, copper, and oil, making it one of the strongest performers in recent months.
China, which accounts for approximately 80% of global mined production, began imposing tight export controls in February 2025, citing national security concerns. These controls have led to a nearly 40% reduction in tungsten exports, according to William Parry-Jones of Wolfram Advisory. The Rotterdam market for ammonium paratungstate (APT), an intermediate product for tungsten metal, has soared from under $400 per metric ton a year ago to over $2,200. U.S. Geological Survey data cited by Project Blue indicates that tungsten products are now trading at their highest levels in at least 90 years.
Manufacturers are facing significant challenges due to the supply squeeze, impacting various sectors including semiconductors. The issue is compounded by the fact that tungsten used in munitions is consumed upon detonation, unlike recycled tungsten carbide drill bits. This growing demand, particularly from ongoing conflicts, is depleting existing stocks, leading to calls from analysts like Evan Mills of Scholar Advising to secure new sources, with the U.S. government already backing projects like Cove Kaz in Kazakhstan with substantial investments, including a $900 million commitment and a $700 million commitment earlier this year.
