Tungsten, a strategic metal hailed as the "teeth of industry," is experiencing a historic surge in prices. By early 2026, the price of black tungsten concentrate had soared from approximately 140,000 yuan/ton a year earlier to over 460,000 yuan/ton, an increase of more than 200%. Its downstream product, ammonium paratungstate (APT), has even broken through the 680,000 yuan/ton mark, reaching a multi-year high.
The core driver of this surge is the rapidly widening long-standing supply-demand imbalance.
Supply continues to tighten. As the world's largest tungsten producer, China supplies approximately 83% of global tungsten resources. In recent years, the government has implemented protective mining and strict total quantity control for tungsten mines. In 2025, the first batch of tungsten mining quotas decreased by 6.5% year-on-year. Coupled with the depletion of quotas at some mines at the end of the year and routine maintenance, the spot market is extremely tight. In January, a bidding transaction at a mine in Yunnan Province resulted in a price far exceeding the then-current market average, directly igniting bullish sentiment in the market.
New momentum is emerging on the demand side. While traditional demand from cemented carbide and military applications remains robust, two emerging sectors are experiencing explosive growth. First, the photovoltaic industry: as silicon wafers become thinner, tungsten-coated diamond wire, with its finer and stronger properties, is rapidly replacing traditional high-carbon steel wire, becoming the industry's new favorite. Second, artificial intelligence and computing infrastructure are driving a surge in demand for high-end printed circuit boards (PCBs), significantly increasing the consumption of tools such as tungsten micro drills.
Faced with soaring raw material prices, downstream companies are actively responding. A cemented carbide company executive stated that despite significant cost pressures, through long-term contracts, cost reductions in production lines, and product upgrades, orders are already booked into the next quarter, with some high-end products even achieving both increased volume and price. The industry is accelerating its upgrade towards higher value-added sectors.
Looking ahead, industry insiders generally believe that the "tight balance" in the tungsten market will become the new normal, driven by both rigid supply constraints and rising emerging demand. While tungsten prices may fluctuate, its value center has significantly shifted upwards. This tungsten market storm not only affects manufacturing costs, but also reflects the deep dependence of global high-end industrial upgrading on core strategic resources.
