Tungsten prices rise more than fourfold in one year, marking a fundamental turning point in the industrial supply chain structure

The tungsten market has reached a historic turning point. From early 2025 to early 2026, the main products in the tungsten-related industry are facing unprecedented price increases, and the entire industry chain is confronting new management challenges and strategic choices. According to multiple industry insiders, this price fluctuation is not just a market trend but a catalyst for restructuring the industry itself.

Companies across the tungsten industry chain are now launching successive rounds of price adjustments. Notices of price hikes have been issued across various sectors, from raw materials to processing tools and scrap recycling. Upstream companies are leading the market, while mid- and downstream companies are facing complex responses.

Market Structure Polarization: Rising Tungsten Prices Highlight Corporate Strength

Currently, the prices of tungsten products are rising at an astonishing rate. Data up to February 28 shows that key products such as tungsten concentrates, ammonium paratungstate (APT), and tungsten powder have increased by over 400% since the beginning of the year. Within the industry, tungsten has become an indispensable strategic material in modern manufacturing, often referred to as “the teeth of industry.”

Its applications span construction machinery, metal cutting tools, automotive manufacturing, electronic information, aerospace, and military industries, with a very robust demand base. However, the rapid price increase is creating a clear “benefit gap” between upstream and downstream companies.

Upstream mining and refining companies are enjoying direct benefits, while mid- and downstream processing and manufacturing firms face severe cost pressures. Companies like Xiamen Tungsten, Zhangyuan Tungsten, and Xianglu Tungsten have announced optimistic performance forecasts for 2025, with significant increases in revenue and net profit. They attribute these gains to supply shortages in tungsten raw materials and rising market demand.

In contrast, small and medium-sized enterprises (SMEs), especially tool manufacturers, are facing different challenges. Tool processing companies are caught in a “sandwich” situation, dealing with fluctuating raw material prices upstream and resistance to price increases from downstream customers. Raw material prices upstream fluctuate daily, with quotes valid only for the day, and procurement costs continue to rise. Yet, downstream machine processing manufacturers are reluctant to raise product prices immediately.

Large companies leverage their financial strength and scale advantages to absorb cost fluctuations through price increases, but some SMEs with limited funds and inventory shortages are forced to reduce production or withdraw from the market. This process is gradually forming a clear polarization across the industry chain.

Supply and Demand Tightness Accelerates Market Dynamics: Multiple Factors Distort Price Formation

The sustained rise in tungsten prices is rooted in fundamental supply and demand imbalances. Since 2025, the global tungsten industry chain has experienced a serious supply shortfall relative to demand. Policy restrictions on production, stricter environmental standards, and strategic resource reserves have all contributed, causing key products like tungsten powder and tungsten carbide powder to reach record highs.

This supply-demand imbalance further fuels market sentiment. Price adjustment notices from industry chain companies amplify the overall bullish mood. Companies such as Zhangyuan Tungsten, Xianglu Tungsten, Huashui Precision, and Xinxing Co. have announced new price adjustments, raising long-term contract estimates for tungsten raw materials and tool products. Huashui Precision has already implemented four price hikes since December 2025, reflecting the market’s volatility.

Unusual fluctuations are also observed in the scrap tungsten recovery market. According to a manager at a tungsten scrap recovery company in Hunan Province, current scrap tungsten prices are essentially “fluctuating in real-time.” For example, the recovery price for tungsten carbide end mills was about 200 yuan/kg in March 2025, but now exceeds 1,000 yuan/kg, a fivefold increase.

The upward pressure on tungsten prices is also affecting the chemical sector. Major Korean tungsten chemical manufacturers like SK Specialty and Foosungs have notified downstream semiconductor companies such as Samsung Electronics and SK Hynix that from 2026, the prices of tungsten hexafluoride products will increase by 70% to 90%.

Market distortions are further exacerbated by the simplicity of current pricing models. Many nonferrous metal processing companies adopt a “raw material cost + processing fee” formula, so rising tungsten prices directly impact their procurement costs. Optimistic market psychology and delayed inventory sales by holders create a paradox where downstream buyers “have funds but cannot buy.” As industry negotiations intensify, trading volume tends to decline.

Strategic Shift Driven by Price Surge: Industry Chain Reforms Accelerated

The continuous surge in tungsten prices is prompting a fundamental transformation of the industry chain. China, the world’s largest tungsten producer, continues to restrict supply through quota and environmental regulations. Meanwhile, demand from emerging industries such as solar power, AI, and new energy vehicles is expanding rapidly, making short-term supply improvements unlikely.

In this environment, tungsten prices are likely to remain high, and the entire industry chain is entering a critical phase of restructuring, optimization, and upgrading. Industry leaders in tool manufacturing note that “the higher the raw material prices, the more value is created through technology.” Companies are shifting away from past low-price competition models toward increased R&D and product sophistication.

Major industry players like Ouke Yi share this view. With sustained raw material price increases, the tool industry is expected to undergo deep adjustments and move toward higher-end development. Price hikes are prompting downstream customers to focus more on processing efficiency, durability, and stability, creating opportunities for companies with technological and service advantages. The industry is transitioning from a “price war” to a “value war” strategy.

The final applications of tungsten are expanding, especially in solar power. According to research from Jianghai Securities, tungsten wire is entering a large-scale application phase in silicon wafer cutting. By 2025, the market penetration rate of tungsten wire diamond saws will surpass 60%, and by 2026, global heterojunction (HJT) installation capacity is expected to reach 80 GW, directly driving an estimated 6,400 tons of tungsten demand.

Upstream companies are also accelerating resource strategies. Xiamen Tungsten has acquired shares in Jiujang Dadi Mining Development Co., aiming to gain control. The goal is to expand mineral resource reserves, improve domestic raw material self-sufficiency, and reduce procurement risks. Similarly, several upstream firms are focusing on resource integration and improving production efficiency.

Overall, the high tungsten prices are not just a temporary market disturbance but a catalyst for a comprehensive industry restructuring. Through technological innovation, organizational reorganization, and strategic management, the industry chain is poised to enter a new phase of development.