Tungsten prices have increased more than fourfold in over a year, marking a critical period of transformation for the industry chain

Recently, companies in the tungsten industry chain have launched a new round of price adjustments, covering tungsten raw materials (including long-term contracts), tungsten alloy tools, waste tungsten recycling, and other fields. Many companies stated in their price adjustment notices that the rising tungsten prices remain the main reason for this round of price hikes. As of February 28, prices for major tungsten products such as tungsten concentrates, ammonium paratungstate (APT), and tungsten powder have increased by over 400% compared to early 2025.

“Now it’s no longer called tungsten steel, but tungsten gold.” Facing the continuous rise in tungsten prices, a tool manufacturing company executive complained that current tool processing companies are like “sandwich cookies,” with upstream raw material prices changing daily, and quotes only valid for the day, leading to steadily rising procurement costs.

The industry-wide price increase not only affects the operations of related companies but also accelerates the transformation of the entire industry chain. Several industry insiders interviewed said: Under this background, upstream mining companies are speeding up resource reserves and production efficiency improvements; mid- and downstream companies are showing clear differentiation under cost transmission, having to absorb pressure through technological upgrades and process optimization.

Tungsten Prices Hit New Highs, Upstream and Downstream “Uneven”

As an essential core material in modern industry, tungsten is known as the “industrial tooth,” widely used in engineering machinery, metal cutting tools, automobile manufacturing, electronic information, aerospace, military industries, and more.

Since 2025, prices of major tungsten products in China have entered an unprecedented upward trend, exceeding market expectations. Data from Zhongwutong Online shows that in February this year, the Chinese tungsten market continued to demonstrate strong price increases. Apart from the first three days of the Spring Festival holiday when prices stabilized, the prices of major tungsten raw materials generally surged by 10,000 to 60,000 yuan per ton daily, with a monthly increase of 30%, and a cumulative increase of nearly 80% this year.

Shanghai Securities News found that in response to the sustained rise in tungsten prices, upstream and downstream companies in the tungsten industry chain are showing distinct “hot and cold” characteristics, with resource reserves and scale advantages becoming key factors for companies to cope with price fluctuations.

On one hand, upstream mining companies with tungsten ore resources and smelting capabilities have become direct beneficiaries of the price increase. Companies such as Xiamen Tungsten, Zhangyuan Tungsten, and Xianglu Tungsten recently announced positive earnings forecasts for 2025, mainly driven by rising tungsten prices and industry chain synergy. Zhangyuan Tungsten stated that during the reporting period, tungsten raw material supply was tight, demand increased, and raw material prices rose sharply. The company leveraged its full industry chain advantages, achieving significant growth in revenue and net profit in 2025.

On the other hand, under the impact of tungsten price fluctuations, the downstream tool industry continues to show increasing differentiation. Leading companies with sufficient capital and scale effects can buffer cost fluctuations through product price increases; some small and medium-sized enterprises face challenges such as limited funds and insufficient inventory, resorting to production cuts or waiting, with some even exiting the market.

A tool manufacturing company executive said that current tool processing companies are like “sandwich cookies,” with upstream raw material prices changing daily, and procurement costs continuously rising; downstream machine processing factories find it difficult to pass on product price increases immediately, leading to high cost pressures.

Multiple Factors Catalyze Supply and Demand Imbalance, Causing “Daily Price Changes”

Why are tungsten prices soaring? The common consensus among industry chain companies and market institutions is supply and demand imbalance.

“Since 2025, the global tungsten industry chain has experienced intensified supply-demand imbalance, coupled with policy controls, demand surges, and other factors, leading to continuous price increases in tungsten powder, cobalt powder, and tungsten carbide powder, reaching new historical highs,” said Huarei Precision in its price adjustment notice. Xiamen Tungsten stated that demand suddenly increased, supply has not kept pace, and supply and demand are in short-term imbalance.

Against this backdrop, repeated price adjustments by industry chain companies have further stimulated bullish market sentiment.

Recently, Zhangyuan Tungsten, Xianglu Tungsten, Huarei Precision, and Xinrui Co., Ltd. announced new price adjustment notices, raising long-term contract prices for tungsten raw materials and tool products. Among them, Huarei Precision has adjusted prices four times since December 2025.

“Frequent price adjustments are truly a helpless move,” Huarei Precision said. The company currently operates at full capacity and will continue to focus on technological R&D and efficiency improvements to control costs as much as possible.

A tungsten scrap recycling company executive in Hunan bluntly said that waste tungsten prices are rising sharply, basically showing a “daily price” pattern. For example, in March 2025, the recycling price of waste tungsten steel end mills was about 200 yuan/kg, but now it has exceeded 1,000 yuan/kg, nearly five times higher, setting a new record.

The rise in tungsten prices has also spread to the tungsten chemical sector. Previously, Korean manufacturers such as SK Specialty and Foosung announced that from 2026, some tungsten hexafluoride products’ prices would increase by 70% to 90%, notifying downstream semiconductor companies like Samsung Electronics and SK Hynix.

Industry analysts say that nonferrous metal processing companies generally adopt a “raw material price + processing fee” pricing model. The sustained high tungsten prices significantly increase procurement capital costs. Meanwhile, market sentiment remains optimistic about the future trend of tungsten prices, with holders reluctant to sell and waiting for higher prices. Downstream buyers are even experiencing “buying without getting goods,” leading to subdued market transactions and intensified industry chain negotiations.

Meeting New Demands, Industry Chain Enters Critical Transformation Period

China is the world’s largest tungsten producer. Several industry insiders said that with domestic quota controls, environmental restrictions, and strategic stockpiling reducing supply, the emerging demands from photovoltaic, AI, new energy, and other sectors continue to grow, making short-term supply-demand balance difficult to achieve. It is expected that tungsten prices will remain high for some time, and the industry chain may enter a key stage of ecological restructuring and upgrading.

“Raw materials becoming more expensive highlights the value of cost reduction through technology. Currently, the price differences are not large, and the competition is about product quality and service,” said a tool manufacturing company executive. The rising raw material prices have, to some extent, helped companies break free from past low-price competition, allowing focus on R&D and upgrading to meet customer needs.

Ouke Yi, in its latest investor relations activity summary, stated that under the background of continuous raw material price increases, the tool industry will accelerate into a stage of deep adjustment and transformation. Price increases are pushing downstream customers to pay more attention to processing efficiency, tool lifespan, and stability, helping companies with technological and service advantages stand out. Industry competition will shift from “price wars” to “value wars.”

Currently, tungsten’s terminal applications are expanding continuously, especially in photovoltaic and new energy vehicle fields.

Jianghai Securities research report shows that in the photovoltaic sector, tungsten wire has fully entered a stage of large-scale application explosion. By 2025, the market penetration rate of tungsten diamond wire in silicon wafer cutting has exceeded 60%. In 2026, the global new heterojunction (HJT) capacity is expected to reach 80 GW, directly driving an additional demand of about 6,400 tons of tungsten.

Upstream mining companies are also accelerating resource integration and efficiency improvements. In February, Xiamen Tungsten announced plans to acquire part of the equity of Jiujiang Dadi Mining Development Co., Ltd. to increase mineral reserves, improve raw material self-sufficiency, and reduce procurement risks.

Source: Shanghai Securities Journal

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