Why Tungsten Prices Are Rising? -- Main Supporting Logics for Tungsten Price Increases
Tight Resource Supply: Domestic tungsten mining is constrained by environmental policies, crackdowns on illegal mining, and total mining volume control targets; the replenishment of overseas resources before 2027 is limited.
Rigid Demand Support: The demand for tungsten in applications such as machinery processing, petrochemicals, mining, electronics, medical shielding, aerospace, and defense is difficult to replace in the short term.
Strategic Value Reassessment: Against the backdrop of a complex and volatile international political and economic environment and escalating global geopolitical conflicts, the demand for key strategic resources is increasing.
Capital Synergy: In the current context of risk aversion driving the rise of precious metals and other commodities, industrial capital and financial capital are showing significant resonance. Tungsten mines and trading companies are holding onto their stock with reluctance to sell, coupled with the intervention of speculative capital, further amplifying market volatility.
What Could Derail the Rally? -- Uncertainties and Risks Facing the Tungsten Market
Urban Mining Expansion: Rising tungsten prices stimulate secondary resource development, including the reuse of old mines, lean mines, tailings ponds, smelting slag, wastewater sediments, and scrap alloy recycling.
Demand Substitution Risk: Current consumption is lagging significantly behind the pace of raw material price increases. If costs remain high, downstream industries will accelerate their search for alternative materials and technological transformation.
Macroeconomic Pressures: Weak growth in major global economies and a slower-than-expected manufacturing recovery may suppress end-user demand. Frequent changes in international trade policies and significant exchange rate fluctuations will affect import and export costs and trade flows.
