The price of tungsten, often referred to as the “teeth of industry” due to its crucial role in various sectors, has surged to a ten-year high. Wind data statistics indicate that the average price of 65% grade tungsten concentrate in Jiangxi on May 13 reached 153,500 yuan/ton, marking a 25% increase since the beginning of the year and setting a new high since 2013. Industry experts attribute this price surge to tight supply caused by total mining volume control indicators and increased environmental supervision requirements.
Tungsten, an important strategic metal, is also a key resource for China, with the country’s tungsten ore reserves accounting for 47% of the world’s total and its output representing 84% of global production. The metal is essential in various industries including transportation, mining, industrial manufacturing, durable parts, energy, and the military sector.
The industry views the surge in tungsten prices as a result of both supply and demand factors. Tungsten ore is among the specific minerals designated by the State Council for protective mining. In March this year, the Ministry of Natural Resources issued the first batch of 62,000 tons of tungsten ore mining total control targets for 2024, affecting 15 provinces including Inner Mongolia, Heilongjiang, Zhejiang, and Anhui.
The increase in tungsten prices has significant implications for industries reliant on the metal, and the surge reflects the complex interplay between supply constraints and growing demand. As the world’s largest producer and consumer of tungsten, China’s policies and market dynamics will continue to have a substantial impact on the global tungsten market.
Post time: Aug-08-2024
