Prices for tungsten (wolfram) rose to new record levels in January. Market participants report a mixture of falling inventories, export restrictions from China and robust demand from several industries. In an already tight market, the movement has noticeable consequences: customers are increasingly concerned about available quantities, while traders expect further rising prices in the coming weeks.
The price jump is particularly evident in the preliminary product ammonium paratungstate (APT), which is used to produce tungsten metal. In China, APT was recently at US$1,125 to US$1,150 per metric ton unit (mtu), according to traders – a record level. The market is also picking up outside China: in Rotterdam, prices reached an all-time high of around US$1,100 per mtu. The fact that quotations are simultaneously marking new highs in Asia and Europe is seen by observers as an indication of how tight the global tungsten market currently is.
Tungsten: Key metal for industry, aviation and defense
Tungsten is considered a critical industrial metal. Its importance derives primarily from its physical properties: tungsten is extremely hard and has the highest melting point of all metals. In practice, it is often used as tungsten carbide – for example, in cutting and drilling tools as well as wear parts that are used in machines for manufacturing, mining and construction.
In addition, tungsten plays a role in demanding applications, such as components for aerospace, defense, industrial gas turbines and electronics. Accordingly, strong price jumps can be passed along the supply chain – via material costs, production planning and ultimately also via the calculation of end products. Market participants therefore say that tungsten can be an indicator of the situation in advanced industrial production.
A London-based trader describes the current situation as a bundle of several drivers: the markets are tight, demand from defense, aviation and industrial applications is high, and at the same time there are challenges on the supply side – for example, due to falling ore grades and further restrictions. In addition, there are the problems with exports from China, which are further tightening the market.
China’s export controls are changing availability on the world market
China dominates both the mining and processing of tungsten worldwide. Accordingly, measures from Beijing have a strong impact on the international market. In February 2025, China introduced export controls that tie the shipment of certain tungsten materials to permits. Exporters have since required government permits before they are allowed to export goods.
Another step followed recently: Last month, Beijing named 15 companies that are allowed to export tungsten. Market participants interpret this measure as a further centralization of control – with the possible consequence that the volume for foreign buyers will be more limited. For customers outside China, this increases the uncertainty as to how plannable and in what quantities material will remain available.
William Parry-Jones, founder of Wolfram Advisory and specializing in tungsten markets and supply chain strategies, puts the impact of the controls clearly: Chinese export volumes have fallen by almost 40% year-on-year since the introduction of the restrictions. At the same time, there is not enough raw material outside China to compensate for this decline. In a market that is already described as tight, such a decline increases competitive pressure for available quantities.
Additional tension came this month, according to market participants, due to new Chinese rules for so-called dual-use materials vis-à-vis Japan. Japan is one of the largest importers of Chinese tungsten. If access to material in such an import relationship becomes more difficult, this can indirectly influence the market in other regions – for example, via diversions of supply flows or growing price pressure.
Outside China, production remains fragmented
The shortage is also exacerbated by the fact that tungsten production outside China is comparatively fragmented. According to data from 2024 cited by the US Geological Survey, mine production outside China is mainly led by Vietnam and Russia. In addition, there are smaller contributions from countries such as Rwanda, Bolivia, Austria and Spain. Taken together, these quantities amount to only a few thousand tons per year – a clear imbalance compared to China’s production of 67,000 tons.
This structure is relevant for the market because it limits short-term alternatives. Even if individual producers outside China increase their production, the starting base remains small – and the expansion of mines and processing capacities takes time. This contributes to the fact that the market reacts particularly sensitively to supply failures or export hurdles.
Within China, there are other factors that influence availability. Market participants attribute the high domestic prices to, among other things, a limited production quota: the Chinese mining quota was reduced by 6.5% in 2025 compared to the previous year. At the same time, high capacity utilization in processing and industry indicates that more material is being tied up in the country itself – i.e. less is flowing into exports.
In this context, the experts refer to the expansion of Chinese manufacturing capacities. If more industrial added value takes place in the country, the demand for preliminary products such as tungsten increases domestically. For buyers outside China, this may mean that they are confronted not only with export controls in a tighter market, but also with increasing domestic competition for material.
The bottom line is that January shows a significant shift in the tungsten market: record prices for APT in China and Rotterdam, limited export opportunities and demand that is fueled by several industrial sectors. For the coming weeks, market participants expect the price range to tend upwards rather than downwards – especially if material flows from China remain restricted and alternative sources are not sufficient in the short term.
