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Tungsten Crisis: War Drains Global Metal Stocks
23 Mar
Summary
- Global tungsten stocks are being depleted by ongoing conflicts.
- China's tightened export controls exacerbate a critical tungsten shortage.
- Rising defense demand threatens civilian industries reliant on tungsten.
The global supply of tungsten is facing a severe crisis, driven by escalating military conflicts and China's tightened export controls. Both the U.S. and Israel have utilized thousands of tungsten-laden munitions in their air campaigns, significantly draining existing stockpiles. This demand surge comes at a time when China, the world's largest tungsten producer, has implemented export restrictions and faced a decrease in its own mined production.
Consequently, prices for tungsten intermediates like ammonium paratungstate (APT) have seen a dramatic surge, reaching record highs not seen in at least 90 years. This situation is further complicated by a 10% year-on-year drop in China's mined production in 2025 due to lower quotas and environmental regulations. Non-Chinese production is improving but remains insufficient to meet demand.
The intensifying conflict in the Gulf, coupled with the prolonged war in Ukraine, is leading to increased competition between defense and civilian sectors for available tungsten. Military buyers are likely to outbid civilian industries, posing a threat to manufacturers of semiconductors, printed circuit boards, and solar panels, all of which depend on tungsten for advanced components.
