Tungsten Prices Surge, Rare Earth Prices Cause Global Concerns

Tungsten, another rare metal, is also in high demand, with China controlling 80% of global production, leading to growing supply concerns. Tungsten’s hardness makes it ideal for “superhard tools” used in automotive engines and aircraft parts. It’s also used in electronic equipment components and semiconductors. In defense equipment, it’s primarily used in artillery shells.

Some observers believe that China will reduce its exports of ammonium paratungstate (APT), a raw material for tungsten products. Argus Media reported that as of the 20th, the spot (immediate contract) price of APT in Europe was $1050 per 10 kg. This represents an 8% increase since the beginning of the year, reaching its highest point since 2002, similar to gallium.

Argus Media explained, “Supply concerns from Japan, once a major consumer, are exacerbating tensions in the global supply chain.”

Amidst China’s continued export controls on rare metals, the stock prices of companies involved in key minerals are also rising. Xiamen Tungsten, involved in the tungsten business, has seen its stock price triple since the end of 2024.

Looking at rare earths, where China holds a dominant market share, export prices are also rising. Dysprosium has increased by 26% since the beginning of the year, and terbium by 19%, showing a particularly significant upward trend. Due to concerns about future supply, already high European prices are more likely to withstand further upward pressure.