📰 In-Depth Economic Analysis

Why Are Tungsten Prices Rising So Sharply? 🔩
Why China’s Export Controls and the Restart of the Sangdong Mine Are Drawing Global Attention

Tungsten may not be a household metal, but it is a strategic material that can affect manufacturing, defense, and semiconductor supply chains around the world.

Behind the recent price surge lies a deeper structural issue than war alone: a global supply chain heavily concentrated in China.

Recently, the raw materials market has been paying closer attention to tungsten, as prices have moved sharply higher. Tungsten is not as widely discussed as gold, copper, or lithium, but in real industrial settings it is often treated as a metal that is difficult to replace.

The latest rise in prices is not simply a story of speculation or a temporary trend. It is better understood as a structural shift shaped by higher defense demand, growing semiconductor and EV-related manufacturing, and above all tighter Chinese export controls. At the same time, renewed production at South Korea’s Sangdong tungsten mine after more than three decades has added another important layer to the global discussion.

1. Why Is Tungsten So Important? 🧲

Tungsten is often described as an ultra-hard metal. It is extremely dense, highly wear-resistant, and has a melting point of about 3,422°C, one of the highest among metallic elements. That makes it especially valuable in environments where ordinary metals struggle to perform.

One of its best-known uses is in cutting tools. Tungsten is widely used in drills, machine tools, and cemented carbide parts for shaping and processing other metals. In that sense, tungsten matters not only as a material itself, but as a metal that helps modern industry work with many other metals.

Tungsten is also important in semiconductors, EV-related components, aerospace, and defense industries. Its very high density makes it useful in armor-piercing applications and other high-density systems, while its heat resistance allows it to perform in extreme thermal conditions.

💡 Put Simply

Tungsten combines hardness, density, and extreme heat resistance in one material. That is why it is difficult to replace in sectors such as cutting tools, semiconductors, missiles, and aerospace systems.

2. The Price Increase Is About More Than War 📈

It is true that geopolitical tensions and military demand have supported tungsten prices. Because tungsten is used in defense-related systems, prolonged conflicts in different regions can naturally add pressure to demand.

But the more important issue, according to many market participants, is the supply structure. Tungsten is one of the metals whose global production is highly concentrated in a limited number of locations, with China holding the dominant position in mining, refining, and processing. In a market like this, even a modest increase in demand can move prices sharply, and any change in export policy by the main supplier can affect the entire industry.

That is why the recent surge is often explained less as “war increased demand” and more as “China tightened the valve, and supply concerns pushed prices higher.”

3. Why Does China Have Such Strong Influence? 🇨🇳

China occupies an overwhelming position across the tungsten supply chain, from mining to refining to downstream processing. Recent reporting has pointed out that China accounts for more than 80% of global tungsten output, and that this concentration is the central reason tungsten prices have become so sensitive.

The mood in the market changed even more after China announced export controls in February 2025 on items related to tungsten, molybdenum, bismuth, indium, and tellurium. This meant China was no longer simply the largest producer, but also the country that could directly influence supply through licensing and export approval systems.

As a result, many buyers outside China began moving more aggressively to secure alternative supply, and that scramble itself added to the upward pressure on prices.

📘 Key Point

The core of the tungsten story is not only rising demand, but a bottleneck in a China-centered supply chain. When one country holds the main valve, supply risk becomes a price driver by itself.

4. How High Have Prices Gone Recently? 💹

By early 2026, the price of APT (ammonium paratungstate), one of the most widely watched intermediate tungsten products, had climbed to record or near-record levels in both China and Europe. Some market references mentioned values around $1,100 per metric ton unit.

Industry observers generally attribute this move not to one single event, but to several forces acting at once: tighter Chinese production quotas, declining ore grades, stronger domestic manufacturing demand within China, and intensified competition among non-Chinese buyers trying to diversify supply.

In other words, tungsten is increasingly being treated not just as an industrial input, but as a strategic material.

5. Why Is the Sangdong Mine Attracting Attention Again? ⛏️

The Sangdong mine in Yeongwol, South Korea, was once one of the world’s best-known tungsten mines. It had long historical importance in the country’s mining and export industries, but it was shut down in the 1990s after struggling to compete with low-cost Chinese supply.

The market environment has now changed. As tungsten prices rise and governments and companies look for ways to reduce dependence on China, the strategic value of Sangdong has increased significantly. In March 2026, Almonty announced the completion of Phase 1 production facilities for the mine.

According to the company’s announcement, Phase 1 is designed to process roughly 640,000 tonnes of ore per year and target about 2,300 tonnes of tungsten concentrate. With a planned Phase 2 expansion in 2027, annual production capacity could rise to around 4,600 tonnes.

🧠 Why It Matters

Sangdong is no longer viewed simply as a local mining story. It is increasingly seen as a strategic asset in the effort to rebuild tungsten supply chains outside China.

6. Where Could Sangdong’s Output Go? 🌐

The restart of Sangdong is attracting attention not just because a mine is reopening, but because the future destination of its output already appears strategically meaningful.

Almonty has said it has secured a tungsten supply agreement involving a U.S. defense-related customer, while the United States is moving toward tighter restrictions from 2027 on the use of Chinese and Russian tungsten in certain defense procurement settings. Seen in that broader context, Sangdong’s significance goes beyond one country’s mining revival.

In practical terms, the mine is becoming part of a wider effort by the United States and its partners to create more resilient non-Chinese supply routes for critical minerals.

7. Why Is the United States So Sensitive About Tungsten? 🛡️

From the U.S. perspective, tungsten is not just another industrial metal. It is a critical mineral with national security relevance, used across defense, aerospace, advanced manufacturing, and semiconductor-related systems. That is why Washington has been trying to reduce dependence on Chinese tungsten through tariffs, procurement restrictions, and support for allied supply chains.

In December 2024, the Office of the United States Trade Representative announced that tariffs on certain Chinese tungsten products would be increased to 25%. Defense procurement rules are also set to move in a stricter direction from 2027.

Ultimately, what the United States is trying to secure is not simply cheaper tungsten, but a supply chain that can continue functioning even during geopolitical confrontation or military crisis.

8. What Larger Trend Does the Tungsten Market Reveal? 🌍

The tungsten market is currently moving in three visible directions.

First, demand from defense and advanced manufacturing is rising.
Second, China’s export controls are increasing supply uncertainty.
Third, the United States, Europe, and allied economies are trying to build non-Chinese supply chains.

That is why the increase in tungsten prices should not be read merely as a commodity spike. It is also a clear example of how supply-chain restructuring and geopolitics are now directly shaping the metals market.

9. In One Quick Summary 📝

Tungsten is extremely hard, dense, and heat-resistant, which makes it important in cutting tools, semiconductors, aerospace, and defense industries.
The recent rise in prices is being driven less by war alone and more by China-centered supply concentration and tighter export controls.
China accounts for more than 80% of global tungsten output, which gives it enormous influence over the market.
The United States is trying to reduce dependence on Chinese tungsten through tariffs and tougher defense procurement rules.
South Korea’s Sangdong mine is restarting production after more than 30 years and is being watched as a key non-Chinese supply source.
Tungsten is increasingly being discussed not just as an industrial metal, but as a strategic material linked to supply-chain security.

📌 Today’s Economy in One Sentence

The sharp rise in tungsten prices is being driven more by China’s supply dominance and export controls than by war demand alone.
The restart of the Sangdong mine is not just a local mining story, but part of the broader effort to build non-Chinese critical mineral supply chains.
In the years ahead, tungsten is likely to be discussed less as a niche metal and more as a strategic material in the global industrial order.

Search This Blog

Roots and Branches

Why Tungsten Prices Are Surging: China Export Controls, Global Supply Risks, and the Sangdong Mine

Why Are Tungsten Prices Rising So Sharply? 🔩
Why China’s Export Controls and the Restart of the Sangdong Mine Are Drawing Global Attention