Tungsten Prices

The market price of tungsten concentrate has maintained an upward trajectory for seven straight trading sessions, with daily gains reaching as high as RMB 5,000/ton. Behind this rally lies a fundamental restructuring of supply-demand dynamics in the tungsten industry.

​On the supply front, this year’s first batch of tungsten mining quotas was set at 58,000 tons, down approximately 6.5% year-on-year—equivalent to a reduction of 4,000 tons. Notably, while the second quota batch has been allocated, it has not been publicly disclosed, signaling continued tightening of supply. Globally, only three key development projects are poised to contribute new supply, yet all are progressing slower than expected: one has repeatedly delayed its commercial production timeline, while another shipped only 400 tons in the first half of the year.

​Demand-side drivers​ are broadening. Beyond steady growth in cemented carbide demand fueled by manufacturing upgrades, defense applications are accelerating amid rising global military expenditures. Emerging segments—such as tungsten wire, shielding materials for medical and nuclear power applications—are also gaining traction, evolving from niche to meaningful growth contributors. Industry estimates suggest conservative annual consumption growth of around 5%.

​Policy developments​ are introducing additional variables. China’s export controls on certain tungsten products and related technologies, implemented in February, underscore the metal’s strategic value. Meanwhile, the "Deep Earth Economy" vision outlined in the 15th Five-Year Plan is expected to further expand tungsten’s application horizons.

​Inventory levels​ across the supply chain currently sit at historically low levels, creating rigid restocking demand. As Q4 marks the traditional peak season, downstream procurement willingness is strengthening. Mainstream cutting tool manufacturers have recently raised product prices by 10–20%, indicating effective cost pass-through.

Amid persistent constraints on supply and steady demand growth, tungsten prices are poised to remain robust. With the gradual recovery of the manufacturing cycle, this once-overlooked minor metal is demonstrating renewed vitality.