In January 2026, global tungsten prices surged to unprecedented levels, driven by shrinking inventories, China’s export restrictions, and robust industrial demand. In an already tight market, many downstream users have been scrambling to secure supplies to maintain production.
Ammonium paratungstate (APT), a key intermediate used in the production of tungsten metal, reached record prices in China, trading between $1,125 and $1,150 per metric ton unit (mtu) according to market traders. In Europe, prices in Rotterdam also climbed to around $1,100 per mtu, marking another historic high. Market participants generally expect prices to continue rising in the near term as supply constraints persist.
Tungsten is regarded as a strategically important industrial metal due to its exceptional hardness and extremely high melting point, the highest among all metals. It is most commonly used in the form of tungsten carbide, which is widely applied in cutting tools and wear-resistant components for machinery used in manufacturing, mining, and construction. In addition, tungsten plays a significant role in aerospace and defense equipment, industrial gas turbines, and electronic devices.
Because of its essential role in advanced manufacturing, fluctuations in tungsten prices can have broad implications for industrial production costs and supply chains. As a result, the metal is often viewed as an indicator of the health of high-tech and manufacturing industries.
Market participants note that several factors have contributed to the recent price increase. On the demand side, consumption has grown across multiple sectors, including defense, aerospace, and industrial turbine manufacturing. At the same time, supply challenges such as declining ore grades and other production constraints have limited the availability of raw materials. These pressures have been further intensified by changes in China’s export policies.
China dominates both tungsten mining and processing globally. In February 2025, the country introduced export controls on tungsten products, requiring companies to obtain government permits before exporting. More recently, authorities announced a list of 15 companies authorized to export tungsten, a move that could further centralize export activities and potentially reduce the volume of material available to overseas markets.
Industry analysts report that China’s tungsten exports have declined by approximately 40% year-on-year since the export controls were implemented. At the same time, suppliers outside China have struggled to compensate for the reduced export volume, contributing to tighter global supply.
Data from the U.S. Geological Survey (USGS) indicate that tungsten production outside China is relatively fragmented. Major producers include Vietnam and Russia, while smaller amounts are mined in countries such as Rwanda, Bolivia, Austria, and Spain. However, these producers collectively generate only a few thousand tons annually, compared with China’s output of roughly 67,000 tons in 2024.
Higher domestic prices in China have also been linked to policy decisions affecting mining output. The country reduced its tungsten mining quota by 6.5% in 2025 compared with the previous year, limiting raw material supply. At the same time, strong manufacturing activity has increased domestic consumption, further tightening the availability of material for export.
Analysts suggest that China’s long-term strategy of expanding its manufacturing capacity has strengthened its role in global industrial supply chains. If overseas buyers cannot obtain components from their preferred suppliers, they may increasingly turn to Chinese manufacturers instead, reinforcing China’s position as a key global production hub.
Market tightness has intensified further following the implementation of new Chinese controls on certain dual-use materials destined for Japan. Since Japan is one of the largest importers of Chinese tungsten, these additional restrictions have added further pressure to an already constrained global market.
