Prices for tungsten, a metal essential for munitions and the defense industry, have soared 557% in the last 12 months. The European ammonium paratungstate (APT) benchmark reached US$2,250 per metric ton unit, reflecting a combination of factors that have tightened global supply. Restrições imposed by China on certain tungsten products since February 2025 have significantly reduced exports. The military demand intensified by conflicts in Oriente Médio accelerated the increase in recent months.
Tungsten, also known as wolfram, stands out for its high density and resistance, which makes it indispensable in armor-piercing projectiles, missile components, helicopters and fighter aircraft. China dominates world production of the metal, accounting for more than half of global supply. With export control measures implemented amid trade disputes with the Estados Unidos, the flow to international markets decreased significantly.
Stock accumulated by buyers has been running out quickly in recent months. Fabricantes of defense equipment and related industries drew on existing reserves to meet ongoing contracts. The situation led to an acceleration in price gains, with the metal outperforming commodities such as gold and copper over the period.
Chinese restrictions impact global supply
The Chinese decision to include tungsten products on export control lists took place in February 2025. Essa measure restricted shipments to various destinations, prioritizing internal uses and strategic allies. The result was an immediate contraction in availability on the free market.
Producers outside of China face difficulties in compensating for lost volume. Países like Portugal, Áustria and others with limited mining cannot scale production quickly due to environmental and investment issues. Historical dependence on Chinese supply has worsened the imbalance.
Military demand drives consumption
Conflicts in Oriente Médio have increased the use of ammunition and equipment containing tungsten. Projéteis piercings, drone parts and armor require the metal in significant quantities. Estimativas indicate 12% growth in defense-related consumption this year.
Intensified military operations have increased orders from global suppliers. Fabricantes of weapons prioritized stocks to fulfill contractual deliveries. Esse factor contributed to the rapid depletion of commercial reserves.
Prices double in 2026
The European APT benchmark has more than doubled this year alone. The current value of US$2,250 per metric ton unit represents a historic record. The accumulated increase since Chinese restrictions reached 557%, highlighting the volatility of the critical metals market.
Industrial buyers have adjusted procurement strategies to mitigate risks. Alguns have turned to scrap substitutes or recycling, although limited options keep pressure on prices. The semiconductor and drilling tools sector also feels indirect impacts.
Diversified industrial applications
In addition to military use, tungsten is used in alloys for cutting tools and drill bits in mining and oil and gas. Sua extreme hardness guarantees durability in severe conditions. The advanced manufacturing industry relies on metal for high-precision components.
The civil aviation sector uses tungsten counterweights in aircraft. The combination of civil and military applications broadens the demand base, making supply more sensitive to disruptions. Diversificação of sources remains a challenge for the medium term.
Tight market outlook
The imbalance between supply and demand persists in the short term. Restrições Chinese regulations remain in force, with no signs of immediate relaxation. Conflitos geopoliticians keep the need for strategic materials high.
Market monitors possible responses from other producers. Investimentos new mines require years to come into operation. Reciclagem gains relevance, but volumes are still insufficient to balance the scenario.
