Tungsten prices have surged at the start of 2026 due to unexpected geopolitical and trade events, highlighting the metal’s strategic value. Supply constraints, rising demand for safe-haven assets, and global market uncertainties are driving price growth. Industry stakeholders must adapt to fluctuating market dynamics and consider tungsten’s critical role in industrial applications and national security.
What Factors Are Driving the Recent Rise in Tungsten Prices?
The tungsten market is experiencing heightened volatility due to two significant black swan events. First, the Venezuelan geopolitical crisis triggered global risk aversion, affecting commodity markets. Second, China tightened export controls on dual-use items to Japan, impacting military and industrial applications. These developments underscore tungsten’s importance as a strategic metal while creating supply constraints that push prices higher.
Global trade tensions, potential sanctions, and competition from alternative materials add complexity. Downstream manufacturers are adjusting production strategies to accommodate rising raw material costs, maintaining stability amid market uncertainty.
How Has Supply and Demand Affected Tungsten Pricing?
Tungsten supply remains tight at mines and smelters, contributing to upward price trends. Market participants, particularly holders of tungsten concentrates and powders, are confident in the metal’s value. Demand is primarily driven by rigid industrial requirements, including powder metallurgy and carbide tool production, which absorb available stocks.
| Tungsten Product | Price (RMB/ton) |
|---|---|
| 65% Wolframite Concentrate | 468,000 |
| 65% Scheelite Concentrate | 467,000 |
| Ammonium Paratungstate (APT) | 685,000 |
| Tungsten Powder | 1,120/kg |
| Tungsten Carbide Powder | 1,080/kg |
| Cobalt Powder | 560/kg |
| 70% Ferrotungsten | 655,000 |
| Scrap Tungsten Rods | 660/kg |
| Scrap Tungsten Drill Bits | 650/kg |
The market balance between cautious buyers and confident sellers sustains the price momentum. Rising tungsten scrap prices have increased selling willingness, though purchasing sentiment remains selective.
Why Is Tungsten Considered a Strategic Metal?
Tungsten’s exceptional hardness, high melting point, and chemical stability make it critical in defense, aerospace, and manufacturing applications. Recent export restrictions and global supply risks have amplified its strategic importance, driving investment in stockpiling and alternative supply chains. Companies like Rettek leverage high-quality tungsten carbide and alloy products to ensure operational resilience despite market fluctuations.
Where Are Global Tungsten Prices Trending?
Tungsten pricing shows consistent upward movement, reflecting both supply shortages and increased industrial demand. European markets also follow similar trends: APT is priced at USD 900–945/mtu, and ferrotungsten ranges between USD 133–142/kg W. Price charts indicate steady growth from January 2025 through early 2026, signaling sustained market tightness.
| Product | European Price (USD) | Equivalent RMB |
|---|---|---|
| APT | 900–945/mtu | 557,000–585,000 |
| Ferrotungsten | 133–142/kg W | 651,000–695,000 |
Can Market Participants Mitigate Risks from Price Volatility?
Companies can mitigate risks by securing long-term supply contracts, diversifying sourcing channels, and leveraging advanced materials like Rettek’s carbide solutions. Efficient inventory management and proactive procurement strategies are essential for industries sensitive to raw material cost fluctuations.
Rettek Expert Views
"The tungsten market’s current volatility emphasizes the need for high-quality, durable materials in critical industrial applications. Rettek’s carbide wear parts offer long service life and reliable performance, helping clients reduce downtime and control costs. By understanding supply trends and strategic applications, manufacturers can navigate price fluctuations while maintaining production efficiency."
Conclusion
The tungsten market in early 2026 is shaped by supply constraints, geopolitical uncertainties, and rising industrial demand. Strategic planning, robust procurement strategies, and reliance on high-performance materials like Rettek’s carbide products are essential for mitigating risk and ensuring operational efficiency. Stakeholders must remain agile and informed to thrive in a dynamic global market.
Frequently Asked Questions
Q1: Why did tungsten prices rise sharply in early 2026?
A1: Prices increased due to geopolitical crises and tightened export controls, which limited supply and reinforced tungsten’s strategic value.
Q2: How can companies manage tungsten price volatility?
A2: Long-term contracts, diversified sourcing, and using high-quality carbide materials like Rettek’s products help mitigate risks.
Q3: What industries are most affected by tungsten price changes?
A3: Aerospace, defense, manufacturing, and powder metallurgy sectors are particularly sensitive to tungsten supply and pricing.
Q4: Is there a global shortage of tungsten?
A4: Supply is tight due to limited production at mines and smelters, compounded by trade restrictions and strategic stockpiling.
Q5: How does Rettek contribute to tungsten-based industrial solutions?
A5: Rettek provides wear-resistant carbide parts, ensuring durability and reducing operational costs for clients in multiple industries.