China to Limit Exports of Critical Metal Tungsten
China will start limiting exports of tungsten, a critical metal used in weapons and semiconductors, starting December 1. The move comes as demand for non-China tungsten increases due to escalating US-China tensions and a US Defense Department ban on Chinese-mined tungsten.
China’s Ministry of Commerce has released a list of tungsten and critical mineral products that require licenses for export. The move is seen as a reversal of past decades, during which China poured cheap tungsten into the global market to control 80% of the supply chain.
However, analysts say that the prices of tungsten need to increase significantly for mining the metal to be profitable. Christopher Ecclestone, principal and mining strategist at Hallgarten & Company, estimates that prices need to trade $50 higher than their current price of around $335 per metric ton unit of ammonium para tungstate.
In the meantime, the US has increased tariffs on Chinese tungsten by 25% and is expected to impose more tariffs under a Trump administration. This could make it more commercially viable for some US mining projects to reopen.
The US has not commercially mined tungsten since 2015, but several projects are reopening or planning to reopen, including the Sangdong mine in South Korea and a mine in Idaho. Almonty Industries, which operates a tungsten mine in Portugal, is working to restore the Sangdong mine to around 50% of its potential output by summer 2025.
The US Geological Survey has identified around 100 sites in 12 US states with significant amounts of tungsten, and some of these sites are planning to begin production soon. Demesne Resources, a Canadian company, is planning to close an eight-year deal worth $5.8 million to acquire the IMA tungsten mine in Idaho and expects to begin production by spring.
Overall, the increasing demand for non-China tungsten and the reopening of US mining projects are expected to help stabilize raw tungsten prices in the near term, but it may take time for the industry to adjust to the new supply and demand dynamics.