Tungsten prices hit records after China export curbs

Tungsten prices have climbed to record highs since China restricted exports of the metal, raising concern among manufacturers that rely on it for defence, aerospace, mining and industrial tools.

CME Group said on Monday that it will launch a dedicated tungsten futures market by early next year, citing growing demand and the need for more price transparency.

Tungsten is valued because it has the highest known melting point of any metal and is extremely hard. It is used in cutting tools, drilling, alloys that resist heat and corrosion, aerospace parts and some military hardware, including armour-piercing munitions.

China dominates the market. A cited US government estimate puts global tungsten production at 85,000 tonnes in 2025, while the CyclOpe report on raw materials says China accounts for about 79% of production. Ofremi, the French observatory of mineral resources for industrial sectors, says China accounts for about 86% of processing raw tungsten into industrial metal.

The European Union is supporting five tungsten projects among its strategic minerals efforts, including planned mines in Spain and Portugal. France’s former Salau tungsten mine in Ariege is also being discussed by supporters who want it reopened.

Kevin Pallas, head of Group 6 Metals, which owns Australia’s Dolphin Mine on King Island, said the main challenge was securing supply outside China. The item said mining production alone would not be enough to reduce dependence on Chinese refining.