China chokes Tungsten supply
Tungsten miner says clients in shock as China chokes supply
Mining.Com February 6, 2025 ~ Mining Weekly
China accounts for about 80% of the world’s tungsten output, and there are concerns the government could add measures around tungsten scrap that would further constrict its availability.
“It’s the warning shot, because we cannot exist without it,” Black said in a phone interview from his base in New York on Thursday. “Our economy, manufacturing, defense, everything, is so dependent on it. And yet, Russia, China and North Korea have about 90% of the output.”
China has banned imports of tungsten scrap for a number of years, citing environmental concerns over how it’s processed. If it were to lift the embargo, it could suck in more supply and limit what’s left for other countries. That would create “a situation where it’s very difficult for my customers to compete with China,” said Black.
“The question is, how much will China tighten the screw to be heard?” he said. “I think the news was bad, but I think it’s going to get worse.”
What is tungsten and why is it important?
Tungsten is a very hard metal with the highest melting point of any metal at 6,192 degrees Fahrenheit. An estimated 60% of the tungsten consumed in the US is used to make tungsten carbide, a highly durable material used in construction, metalworking, and oil and gas drilling.
The tungsten market is valued at roughly $5 billion, making it a relatively niche market compared with other major metals, such as copper at more than $200 billion, according to Bloomberg calculations.
China is the world’s biggest importer of the most heavily traded commodities like crude oil, soybeans and iron ore, leaving critical minerals as one of the few areas where its dominance over supply give it leverage. Its latest export controls affect four other minerals in addition to tungsten that have applications in high-tech industries.
Beijing’s willingness in recent years to impose trade restrictions on critical minerals has forced companies in the US and its allies to seek alternatives to Chinese output.
In the US, tungsten hasn’t been mined commercially since 2015 and the nation has counted China as its biggest source of imports.
China has already put export restrictions on gallium, germanium and antimony. That pushed up prices of the niche metals — which have crucial uses in many Western industries — and analysts also expect a similar price trend in the relatively small and concentrated market for tungsten.
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