Market Research

The global tungsten market experienced a dramatic upward shift this quarter, with price indices soaring across key regions including North America, APAC, and Europe. Supply-side disruptions, tightening feedstock availability, and resilient downstream demand from aerospace, automotive, electronics, and defense industries collectively pushed tungsten prices to multi-year highs.

Latest Tungsten Price Trend: - https://www.chemanalyst.com/Pricing-data/tungsten-1606

As a critical strategic metal known for its exceptional hardness, high melting point, and density, tungsten plays an essential role in manufacturing cutting tools, wear-resistant components, superalloys, electrical contacts, and military-grade applications. Given its heavy reliance on concentrated global supply chains—particularly from China—any disruption reverberates quickly through international markets.

Global Tungsten Market Overview

Tungsten is considered a critical raw material in many advanced industrial economies. It is widely used in:

• Cemented carbides (cutting and drilling tools)
• Aerospace turbine components
• Electrical and electronic components
• Defense equipment
• Energy infrastructure

The global tungsten supply chain remains heavily dependent on Chinese production, which accounts for a significant share of mining and processing capacity. Therefore, regulatory changes, export controls, or environmental crackdowns in China have an outsized influence on international pricing.

This quarter, tightening supply conditions and resilient industrial consumption resulted in sharp price escalations across major markets.

North America: Strong Industrial Demand Pushes Prices Higher

United States Tungsten Price Trend

In the United States, the Tungsten Price Index rose by 65.43% quarter-over-quarter, marking one of the steepest increases recorded in recent years.

• Average Tungsten Price: USD 112,360.67 per metric ton
• Quarterly Index Movement: +65.43%

Market Drivers in the U.S.

Several factors contributed to the sharp price escalation:

1. Supply Constraints from China
   Continued tightening of exports and production controls limited the availability of tungsten concentrates and intermediates.
2. Robust Industrial Offtake
   Strong demand from aerospace, defense manufacturing, and heavy machinery sectors supported elevated purchasing activity.
3. Strategic Stockpiling
   Heightened geopolitical uncertainty encouraged buyers to secure long-term inventories, further tightening spot market availability.
4. Energy and Processing Costs
   Rising energy prices increased production and refining costs, adding upward pressure to finished tungsten pricing.

APAC: Vietnam Witnesses Record Index Surge

Vietnam Tungsten Price Trend

Within the APAC region, Vietnam experienced the most dramatic surge among the tracked markets.

• Tungsten Price Index Increase: +80.365% quarter-over-quarter
• Average Tungsten Price: USD 106,486.33 per metric ton

Tungsten Price Chart 2026: - https://www.chemanalyst.com/Pricing-data/tungsten-1606

Key Drivers in Vietnam

1. Chinese Supply Constraints
   Vietnam, while an important tungsten producer itself, remains connected to Chinese trade flows. Export tightening from China reduced feedstock availability regionally.
2. Increased Export Demand
   With Western buyers diversifying away from Chinese sourcing, Vietnam saw heightened demand for alternative supply.
3. Processing Capacity Limitations
   Limited expansion capacity in regional refining facilities amplified supply bottlenecks.
4. Raw Material Tightness
   Availability of high-grade concentrates declined, raising procurement costs.

Europe: Germany Reflects Tightened Feedstock Conditions

Germany Tungsten Price Trend

Europe also experienced strong upward price pressure, particularly in Germany, one of the continent’s largest industrial hubs.

• Tungsten Price Index Increase: +70.86% quarter-over-quarter
• Average Tungsten Price: USD 110,252.00 per metric ton

Key Factors Impacting German Prices

1. Elevated Feedstock Costs
   Import-dependent Europe faced higher raw material procurement costs due to restricted global availability.
2. Energy Cost Pressures
   European energy prices remain structurally higher than many other regions, increasing tungsten refining and manufacturing expenses.
3. Automotive & Tooling Demand
   Strong demand from Germany’s engineering and automotive sectors supported sustained consumption.
4. Inventory Replenishment
   Buyers rebuilt stocks after earlier cautious purchasing cycles, accelerating short-term demand.

Observations:

• Vietnam recorded the highest percentage increase, indicating heightened regional supply stress.
• The USA posted the highest absolute average price, driven by strong industrial demand and strategic buying.
• Germany remains closely aligned with U.S. pricing, reflecting Europe’s dependency on imported concentrates.

The uniform upward trajectory across all regions suggests a global supply imbalance rather than isolated regional disruptions.

Core Market Drivers Behind the Tungsten Rally

1. Concentrated Global Supply

China controls a dominant share of tungsten mining and refining. Any export quota adjustments or environmental inspections immediately constrain international supply.

2. Limited Substitute Materials

Tungsten’s properties—extreme hardness and thermal resistance—are difficult to replicate, limiting substitution options in high-performance industries.

3. Defense and Aerospace Demand

Geopolitical tensions have increased military production globally, supporting sustained demand for tungsten-based alloys and armor-piercing components.

4. Strategic Metal Classification

Several governments classify tungsten as a critical mineral, encouraging stockpiling behavior during uncertainty.

5. Mining Investment Gaps

New tungsten mining projects face long development cycles and environmental hurdles, limiting short-term supply expansion.

Price Index Interpretation

The Tungsten Price Index movement exceeding 65%–80% quarter-over-quarter is highly significant. Such spikes typically reflect:

• Supply-side shocks
• Export restrictions
• Rapid inventory drawdowns
• Strategic buying

The magnitude of the increase suggests a structural imbalance rather than routine cyclical variation.

Short-Term Outlook

Bullish Factors

• Continued Chinese export tightening
• Strong defense and aerospace activity
• Limited new mining output
• Inventory rebuilding cycles

Potential Moderating Factors

• Demand slowdown in global manufacturing
• Increased recycling rates
• Government intervention to stabilize critical mineral markets

However, unless supply expands meaningfully, tungsten prices are likely to remain elevated in the near term.

Long-Term Structural Considerations

1. Supply Diversification

Countries are investing in alternative tungsten sources to reduce dependence on China.

2. Recycling Expansion

Tungsten scrap recycling is expected to grow, providing some supply relief.

3. Strategic Reserves

Governments may build or release reserves to manage volatility.

4. ESG & Environmental Regulations

Stricter environmental compliance in mining regions could keep production constrained.

Conclusion

The global tungsten market has entered a high-volatility phase marked by sharp quarterly price increases across all major regions.

• USA: +65.43% QoQ, USD 112,360.67/MT
• Vietnam: +80.365% QoQ, USD 106,486.33/MT
• Germany: +70.86% QoQ, USD 110,252.00/MT

The alignment of price surges across North America, APAC, and Europe underscores a globally synchronized supply tightening event rather than isolated market disturbances.

For procurement managers, manufacturers, and commodity analysts, the key takeaway is clear: tungsten’s strategic importance, combined with concentrated supply chains and robust industrial demand, is creating sustained upward price pressure.

Monitoring regional price indices, supply developments in China, recycling trends, and geopolitical movements will be essential for navigating this evolving market landscape.

Unless structural supply expansion materializes, tungsten prices are likely to remain firm, with volatility persisting across global trade corridors.

The current quarter may well mark a pivotal moment in the rebalancing of the global tungsten market.