Why Tungsten Prices Have Risen 600% in a Year

1. Market snapshot: current situation of soaring prices

The global tungsten market is experiencing an unprecedented price storm. As of March 11, 2026, the price of tungsten powder in the Chinese market has exceeded the historical high of 2360 yuan/kg (approximately 343 US dollars/kg).

What does this price level mean?

1.Compared to early 2025, the price of tungsten powder has increased by over 640%.

2. Since 2026 alone, tungsten prices have risen by over 110%.

2. Driving factor: Why has it risen so sharply?

This round of tungsten price increase is not a short-term speculation, but a systematic price reassessment driven by three factors: supply, demand, and strategic attributes.

Supply side: rigid contraction

China, as the leading global supplier of tungsten, is implementing strict total quantity control. The first batch of tungsten concentrate mining indicators in 2025 will be reduced by 4000 tons year-on-year. Combined with stricter environmental inspections and export control policies, the circulation of spot goods in the market is extremely tight, with sellers firmly occupying a dominant position.

Demand side: Strong support from emerging fields

While traditional demand is steadily recovering, emerging fields are creating explosive growth:

Photovoltaic field: The market penetration rate of tungsten wire and diamond wire in silicon wafer cutting has exceeded 60%. The amount of tungsten used significantly increases for every gigawatt (GW) of photovoltaic module produced.

High end manufacturing: The demand for AI precision cutting tools, aerospace, military and other fields continues to increase.

Inventory and emotions: reluctance to sell and panic buying coexist

The inventory of the industrial chain remains at a historical low. According to data, the inventory of tungsten concentrate factories decreased by 25% month on month in February 2026. Holders of goods have a strong sentiment of being reluctant to sell and waiting for price increases, and downstream purchases have even experienced situations where "money cannot buy goods".

3. Industrial chain transmission: Who is benefiting and who is under pressure?

The skyrocketing price of tungsten is reshaping the profit pattern of the entire industry chain.

Upstream mining companies have become the biggest beneficiaries. Enterprises with tungsten mineral resources have experienced explosive growth in performance.

Midstream smelting and powder enterprises are facing enormous cost pressure. Due to rising costs, powder metallurgy enterprises have to passively issue price increase letters, and transactions generally adopt a "back-to-back" model to avoid risks. Some small and medium-sized enterprises have contracted their procurement scale or even suspended accepting orders due to pressure on their funding chain.

Downstream cutting tools and precision manufacturing enterprises are experiencing the most severe cost impact.

4. International perspective: Global resonance

After China implemented export controls on tungsten related items, it directly triggered the security expectations of the global supply chain and promoted the acceleration of overseas strategic stockpiling.

International tungsten prices are rising simultaneously. According to data, the average price of European tungsten iron (75%) in February increased by 29.35% month on month to $183/kg. The FOB price of ammonium paratungstate (APT) in China increased by 37.52% month on month, while the Rotterdam price increased by 41.91% month on month.

More noteworthy is that the price increase has been transmitted to the semiconductor industry. SK Specialty, Foosong, and other South Korean manufacturers of tungsten hexafluoride have notified Samsung Electronics and SK Hynix that prices for some products will increase by 70% to 90% starting from 2026.

5. Future prospects and suggestions

Multiple analysts and market institutions believe that due to the rigid contraction of supply and clear support from demand increments such as new energy, tungsten prices still have strong short-term support, and the price center has systematically shifted upwards.

Suggestions for international buyers:

1. Re evaluate the budget: The procurement budget for 2026 may need to be significantly increased, as tungsten powder prices have already doubled compared to last year.

2. Establishing long-term cooperation: The spot market fluctuates greatly, and signing long-term agreements with reputable integrated suppliers is the key to ensuring stable supply.

3. Pay attention to the tungsten waste market: The economic viability of tungsten waste recycling is prominent and can serve as a supplementary source.

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This release was published on openPR.