Middle East Conflict "Adds Fuel to the Fire"! Industrial Metal Tungsten Price Skyrockets Over 500% in a Year

Cailian Press, March 16 (Editor: Xiao Xiang) A metal widely used in weapons and semiconductor production is becoming a focal point amid current geopolitical tensions: tungsten.

According to Fastmarkets’s APT European benchmark data, tungsten, a super-high-density material critical for drilling equipment and armor-piercing weapons, has more than doubled in price this year. Currently, tungsten prices have surged to $2,250 per ton, an increase of over 500% in the past year.

As buyers’ inventories run out and conflicts in the Middle East intensify military demand concerns, tungsten prices have accelerated further in recent weeks, even prompting some traders focused on niche metals to call it unprecedented…

“In my 12 years in the commodities industry, I’ve encountered many rare and precious metals, but I’ve never seen a market as tight as tungsten is now—perhaps except for lithium in 2021,” said George Heppel, Vice President of Commodity Research at BMO Capital Markets. “But tungsten is different from lithium, which had many projects about to come online.”

On February 4, 2025, China’s Ministry of Commerce and General Administration of Customs jointly issued Announcement No. 10, implementing export controls on five categories of related items, including tungsten, based on the Export Control Law of the People’s Republic of China and the Regulations on Export Control of Dual-Use Items. This was the first revision of the Export Control List for dual-use items effective December 1, 2024. Export controls on certain metals and products are standard international practice.

Since then, many overseas manufacturers have been vying for alternative supplies. Lewis Black, CEO of Almonty Industries, said, “The industrial sector’s demand for raw materials is very urgent,” noting that the company began production at a mine in South Korea last December and is seeking to develop its first U.S. tungsten mine in a decade.

Black revealed that U.S. authorities contacted the company last month regarding emergency material supplies. Nearly half of the tungsten produced in South Korea by the company will be shipped to Pennsylvania for military manufacturing.

Black pointed out that as users deplete inventories and export restrictions cause prices to more accurately reflect supply and demand, tungsten prices are gaining momentum. “We’ve never experienced a market-driven price before,” he added, “so we’re not exactly sure where tungsten prices will eventually stabilize.”

Middle East Conflict ‘Adding Fuel to the Fire’

It is worth noting that despite its strategic importance, tungsten remains a niche market. Project Blue estimates its current market size at around $16 billion—about 5% of the copper market based on current prices. Additionally, since tungsten is not traded on major exchanges, market transparency is much lower than copper, and liquidity is poorer.

Nevertheless, over the past year, tungsten prices have risen far more than gold and oil.

Janine Le Roux, a researcher at Project Blue, said the recent surge in tungsten prices has been partly driven by the Middle East conflict.

She pointed out that this year, military-related tungsten consumption—including applications in helicopters, fighter jets, and ammunition—is expected to grow by 12%. Tungsten alloys are commonly used in missile components and as ballast in aircraft and helicopters because their high density helps projectiles maintain momentum and penetrate armor. They are also used in shells, grenades, and armored vehicles.

Of course, while demand from strategic sectors related to national security is significant, most tungsten demand comes from broader economic sectors. According to the U.S. Geological Survey, about 60% of U.S. tungsten consumption is used in carbide components for construction and metalworking, where it provides cutting and wear resistance. The metal is also used in aerospace alloys and chemicals.

Nevertheless, increased defense spending continues to tighten supply.

“The Iran war has sharply reminded us how much 21st-century warfare depends on tungsten metals,” said Heppel of BMO. “Thousands of drones, thousands of missiles, and the drones that counter them. Tungsten plays a crucial role in all of this.”

David Argyle, co-founder of key materials investment firm Arlington Innovation Partners, pointed out that given the market’s scarcity and lack of liquidity, tungsten prices could further soar. However, he believes the current supply crunch is temporary and added, “This frustrating predicament will likely last no more than 24 months.”

(Cailian Press, Xiao Xiang)