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

Recently, tungsten industry chain companies 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 main reason for the price increase remains the rising tungsten prices. As of February 28, prices for tungsten concentrates, ammonium paratungstate (APT), tungsten powder, and other major tungsten products have increased by over 400% compared to early 2025.

“Now it’s no longer called tungsten steel, but tungsten gold,” said a tool manufacturing company manager, commenting on the continuous rise in tungsten prices. Currently, tool processing companies are like “sandwich cookies,” with upstream raw material prices changing daily, and quotes only valid for the day, leading to continuous increases in 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 said that in this context, 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 indispensable core material in modern industry, tungsten is known as the “industrial tooth” and is widely used in engineering machinery, metal cutting tools, automobile manufacturing, electronic information, aerospace, military industry, and other fields.

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

A Shanghai Securities News investigation found that in the face of rising tungsten prices, the operations of upstream and downstream companies in the tungsten industry chain show a clear “hot and cold” disparity, 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 like Xiamen Tungsten, Zhangyuan Tungsten, and Xianglu Tungsten have 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 significantly. The company leveraged its full industry chain advantages, achieving substantial 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 polarization. Leading companies with sufficient capital and scale effects can buffer cost fluctuations through product price increases; however, some small and medium-sized enterprises face limited funds and insufficient inventory, resorting to production cuts, waiting, or even exiting the market.

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

Multiple Factors Drive Price Surge, Supply and Demand Imbalance Causes “Daily Price”

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 for tungsten powder, cobalt powder, and tungsten carbide powder, hitting new historical highs,” said Huarei Precision in its price adjustment notice. Xiamen Tungsten also stated that demand suddenly increased while supply lagged, resulting in a short-term supply-demand 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. have issued new price adjustment notices, raising long-term contract prices for tungsten raw materials and tool products. Huarei Precision has adjusted prices four times since December 2025.

“Frequent price adjustments are truly a helpless move,” Huarei Precision said. The company’s overall capacity is now fully utilized, and it will continue to focus on technological R&D and efficiency improvements to control costs as much as possible.

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

The rise in tungsten prices has also affected the tungsten chemical industry. Previously, Korean manufacturers like SK Specialty and Foosung announced that they would raise the prices of some tungsten hexafluoride products by 70% to 90% starting in 2026, notifying downstream semiconductor companies such as Samsung Electronics and SK Hynix.

Industry analysts say that non-ferrous 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 future tungsten price trends, with stockholders reluctant to sell, waiting for higher prices. Downstream buyers are even experiencing “buying with money but unable to get 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 change. 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 material prices are higher, so the value of technological cost reduction becomes more prominent. Now, everyone’s price differences are not large; the competition is about product quality and service,” said a tool manufacturing company manager. The rise in raw material prices has, to some extent, helped companies break free from past low-price competition, allowing them to focus on R&D and upgrading to meet customer needs.

Ouke Yi, in its latest investor relations activity summary, stated that under the continuous rise in raw material prices, the tool industry will accelerate into a deep adjustment and transformation and upgrading phase. Price increases are pushing downstream customers to focus more on 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 reports show that in the photovoltaic sector, tungsten wire has 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) cell 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.