TUNGSTEN prices have hit their highest level in at least 90 years as the US and Israel burn through munitions supplies in their air campaign against Iran, deepening a supply crisis already set in motion by Chinese export restrictions.
The Rotterdam price for ammonium paratungstate, an intermediate product used to make tungsten metal, has surged from under $400 per ton a year ago to more than $2,200, said Reuters citing data from the Shanghai Metals Market. Tungsten is consequently one of the best-performing commodities of recent months, the newswire said.
China, which accounts for around 80% of global mined tungsten production, tightened its export controls in February 2025 in response to US tariffs. Exports have since fallen by nearly 40%, William Parry-Jones, founder of Wolfram Advisory told Reuters. Chinese domestic output also fell 10% year-on-year to 61,000 tons in 2025 due to lower government quotas and environmental curbs on smaller producers.
Unlike tungsten carbide drill bits, which can be recycled, tungsten used in munitions is destroyed on detonation. The defence sector consumed around 10% of global tungsten supply last year, a share analysts expect to rise sharply as Western nations race to rebuild stockpiles depleted by conflicts in Ukraine and the Gulf, said Reuters.
Military demand is likely to crowd out civilian users, including manufacturers of semiconductors, printed circuit boards and solar panels, analysts warn.
Western supply is growing, with non-Chinese production rising 20% to 19,000 tons last year, led by Kazakhstan’s Boguty mine, though new projects remain years from meaningful output, the newswire said.
