Tungsten Eclipses Gold in Seven-Fold Price Rally As Gulf Conflict Perdures

Tungsten is one of the #CriticalMinerals used in ammunition, and China is the world’s largest producer. Under export control in retaliation to Trump’s tariffs, the price of Tungsten has soared so much that it has eclipsed gold and copper.

According to the United States Geological Survey, China accounts for nearly 80% of the global tungsten mined in 2024. Backed by state subsidies, Chinese Tungsten has flooded the market, pushing other producers out of the market.

The international market price of #Tungsten is based on ammonium paratungstate (APT) powder, and its price skyrocketed to RMB 2,250 per kg at the start of March 2026, compared to just RMB 315 per kg in March 2025, representing nearly a seven-fold increase.

Tungsten (W74) is one of the hardest metals and is widely to manufacture armor-piercing bullets and bunker-busting bombs or missiles. During military conflicts, huge amounts are consumed and need to be replenished.

Thus, the US has itself stopped mining Tungsten domestically for at least a decade. Given the new situation, the Trump Administration is rushing to restore tungsten operations domestically. Similarly, the EU is currently focusing its efforts on the recycling of Tungsten from waste.

Given Tungsten’s small market size and its cyclical nature, it might be difficult to get private companies interested. The global tungsten market totals about USD 16 billion, representing only 5% of the copper opportunity. The rise in demand and price is highly contingent upon the eruption of armed conflicts, which is somewhat hard to predict. Without state intervention, it will be hard to guarantee a strategic supply of tungsten.