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Prices of Chinese tungsten products, including concentrate, ammonium paratungstate (APT) and ferrotungsten, have surged by more than 200% in 2025, according to Fastmarkets data. The rally has been driven by factors like tighter export controls, rising national security concerns and fresh demand from the semiconductor industry, sources told Fastmarkets.
Beijing had tightened export controls on tungsten and other critical metals, including rare earths, tellurium, bismuth and indium from February 4, requiring exporters to obtain special licenses from the Ministry of Commerce and the General Administration of Customs.
“We now have to submit end-user and end-use statements to prove that exported tungsten will not be used in military-related applications,” a tungsten producer said, adding that the additional documentation has led to a longer approval process and slowed international trade flows.China’s total tungsten mining quota had also been reduced for a third consecutive year, with annual cuts of around 6%, further tightening availability, the tungsten producer added.On the smelting front, declining ore grades have weighed on the output efficiency of high-end products. Inventories fell to their lowest level in nearly three years, encouraging holders to withhold material and exacerbating spot-market tightness, according to sources.
Fastmarkets’ assessment of the tungsten concentrate 65% WO3, in-whs China, was 455,000-460,000 yuan ($65,084-65,799) per tonne on December 31, up by some 216% from 143,000-144,500 yuan per tonne on January 8, 2025.
Fastmarkets’ assessment of the tungsten APT 88.5% WO3 min, fob main ports China, was $1,050-1,115 per mtu on December 31, up by some 218% from $335-345 per mtu on January 8, 2025.
Fastmarkets’ assessment of the ferro-tungsten export, min 75% fob China was $134-142 per kg W on December 31, up by more than 210% from $44-45 per kg W on January 8, 2025.
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As China tightens exports on national security grounds, Western countries, particularly the US are scrambling to secure alternative supply. Tungsten is listed among the top 10 critical minerals by the US government.According to the US Geological Survey’s 2025 Mineral Commodity Summaries, the US has no domestic tungsten mining and remains fully reliant on imports and recycling. China accounted for about 27% of US tungsten imports between 2020 and 2023.Washington is stepping up efforts to reduce its dependence on Chinese supply through a mix of industrial policy and strategic intervention, including Pentagon stockpiling plans, Defense Production Act funding and partnerships with allied producers in South Korea, Portugal and Australia. The measures underscore the strategic importance of tungsten to defense supply chains, sources said.
“Developing alternative supply will take time. Building a tungsten mine or refinery typically takes years, followed by additional time to reach stable operations. You’re looking at a three- to five-year gap before new supply can really come online,” a second tungsten producer said.
“Some Chinese suppliers have already pulled back. We began retreating from the US market in 2022, and after the new restrictions in February, we exited completely,” the second tungsten producer said, adding that the company is now focusing on Asian and European markets.
As a result, sharply lower Chinese export volumes have created a supply vacuum in international markets.
Electric vehicles and semiconductors continue to provide steady support. Demand for tungsten hexafluoride (WF₆) — a critical specialty gas used in chip manufacturing — has become a key driver of price gains, a source familiar with the market said.
“WF₆ fills microscopic contact structures to form electrical connections, similar to pouring metal into an extremely fine mold,” Hubei Heyuan Gas’ general manager for the specialty gas division Ming Peng said.
In tight markets, supply typically flows to the highest bidder, one trader said. WF₆ producers are often willing to pay premiums for tungsten feedstock, as raw material costs account for a relatively small share of total chipmaking expenses.
Emerging applications, including nuclear fusion materials, are also beginning to expand the overall demand base, the trader added.
Looking ahead to 2026, market participants remain broadly bullish but cautious, citing heightened volatility driven by policy shifts and geopolitical tensions, sources said.
China’s export controls are expected to remain in place through 2026, though shipments for civilian use could remain steady or even increase as buyers stockpile amid supply concerns, according to a second trader.
The restrictions are also accelerating structural change within China’s tungsten industry, pushing producers away from raw material exports and toward higher-value products such as tungsten carbide, sources told Fastmarkets.
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