Tungsten prices remain at record levels on the international market, driven by Chinese restrictions on exports and persistent concerns about global supply. Ammonium paratungstate (APT), the main intermediate product, records prices close to historical highs, with values around US$ 1,944 per 10 kg of pure WO3 in recent transactions. Esse level reflects a significant increase since the beginning of the year, aggravated by the strict control imposed by China, the world’s main producer. The perceived scarcity sustains the increase even after seasonal periods of lower activity, such as Ano Novo Lunar.
The restrictive measures adopted by China since last year limit the flow of tungsten products abroad, requiring specific licenses and reducing export volumes by up to 40% compared to previous periods. China accounts for more than 75% of global tungsten production, which amplifies the impact of these policies on global supply. Setores like defense, aerospace and semiconductors face increasing pressures to secure supplies as the metal is essential in high strength and durability applications.
Chinese restrictions intensify global shortages
Chinese authorities implemented export controls on APT and other tungsten derivatives starting in February last year. Essas rules require government approvals for each shipment, which has drastically reduced departures from the country. Exportações of certain products have fallen to near-zero levels in some recent months.
Domestic production also faces limitations, with mining quotas reduced by around 6% compared to the previous year. Isso contributes to the tightening of upstream supply, affecting the entire production chain.
International prices soar with sustained demand
APT in the European and American market registers values above US$2,000 per metric unit in recent benchmarks, more than doubling compared to the beginning of the year in some cases. The increase reflects the combination of restricted supply and firm demand from strategic industries.
Global consumers are looking for alternatives to diversify sources, but Chinese dominance makes the transition slow and costly. Estoques lows in several regions worsen volatility in spot prices.
Impact on tungsten-dependent industries
Tungsten is crucial for cutting tools, armor-piercing ammunition and electronic components. The rise in costs puts pressure on the margins of manufacturers who are still unable to fully pass on the increases.
Companies in high-technology and defense sectors accumulate preventive stocks, which reinforces purchasing pressure in the short term. Países consumers evaluate investments in alternative production to mitigate future risks.
Chinese market maintains upward trend
Even with the post-Year Rigidity in domestic supply supports the upward movement.
Analysts note that the initial overheating in the Chinese market has evolved into a structural trend, driven by geopolitical and strategic factors. The maintenance of restrictions indicates persistence of the increase in the coming months.
Outlook for global supply
The search for sources outside of China is gaining momentum, with mining projects in other regions receiving attention. However, the time needed to expand production limits immediate relief in supply.
The balance between growing industrial demand and controlled supply should keep prices at high levels. Participantes of the market closely monitors possible adjustments in Chinese policies.