Tungsten prices surge 557 percent as China tightens export controls

Monday 16 March 2026 - 16:50

By: Dakir Madiha

Tungsten prices surge 557 percent as China tightens export controls

Global tungsten prices have soared to record levels after China tightened export restrictions on the strategic metal, triggering supply shortages that are affecting defense and technology industries worldwide.

The price of ammonium paratungstate, the main benchmark for tungsten trading, has climbed above 2,250 dollars per metric ton unit, according to the European APT index from Fastmarkets. Prices have surged by about 557 percent since China placed several tungsten products under export control in February 2025 during an escalating trade dispute with the United States. The metal’s value has more than doubled again in 2026 alone.

Tungsten is a dense metal used in armor-piercing ammunition, semiconductor production, and industrial drilling equipment. The sharp price increase has turned what was once a niche commodity into a major pressure point for global supply chains as manufacturers rush to secure dwindling inventories.

China dominates global tungsten production. According to the U.S. Geological Survey, the country accounted for roughly 79 percent of the world’s 85,000 metric tons of tungsten output last year.

Since Beijing introduced licensing requirements for tungsten exports in early 2025, shipments of restricted products have fallen sharply. Research firm Project Blue estimates that exports of affected materials dropped about 40 percent year on year.

Chinese exports of ammonium paratungstate declined even more dramatically. Fastmarkets reported that shipments fell nearly 70 percent, dropping from 782 tons in 2024 to just 243 tons during the first eleven months of 2025, based on Chinese customs data.

China has also tightened domestic mining quotas by 6.5 percent in 2025 while declining ore grades have increased extraction costs. Only fifteen companies have been authorized to export tungsten products between 2026 and 2027, reinforcing centralized control over supply.

In January, Beijing further restricted exports of dual use tungsten products to Japan, cutting access to one of the largest buyers of ammonium paratungstate.

By early 2026, tungsten inventories in Europe had fallen to critically low levels. Traders reported a surge in panic buying at major ports such as Rotterdam and Baltimore as companies scrambled to secure supplies.

Analysts at BMO warned in a February report that global markets had effectively slipped into a tungsten shortage, with inventories reaching alarming lows and a new supply deficit expected in 2026.

The tightening supply has prompted policy responses in Western countries. The United States State Department hosted representatives from 54 countries at a ministerial meeting on critical minerals in February, aiming to strengthen supply partnerships.

The Pentagon also launched a call in early March for mining companies to help develop domestic sources of thirteen critical minerals, including tungsten.

Private companies are also attempting to expand production outside China. Almonty Industries began operations at a tungsten mine in South Korea in December and is working to develop what could become the first tungsten mine in the United States in more than a decade.

The company’s chief executive said United States authorities recently contacted the firm for emergency supplies, with nearly half of its South Korean production already allocated to ammunition manufacturing in Pennsylvania.

Project Blue estimates that tungsten demand linked to defense applications, including helicopters, fighter aircraft, and munitions, could increase by about 12 percent this year.

The global tungsten market is expected to reach roughly 16 billion dollars in 2026, though it remains relatively small and opaque compared with other commodities.

Despite growing investment in alternative supply sources, analysts warn there is no quick solution. China International Capital Corporation predicts that the global tungsten supply gap could exceed 17 percent of demand between 2026 and 2028.

Industry experts say new mining projects in Western countries may take three to five years before they can contribute significant output to global supply.