This metal nicknamed 'industrial teeth' — why did its price surge 600% in a year?

Price spike: from a quiet commodity to a "star"

Tungsten — the hard, high‑melting silver metal colloquially called the industrial "teeth" — has leapt from a neglected industrial commodity to a market star. According to Zhongwu Online (中钨在线), it has been reported that black tungsten concentrate was trading at about ¥1.03 million per tonne on March 18, up from ¥460,000 at the start of 2026 and roughly ¥143,000 a year earlier — a rise of more than 600% since early 2025. Why the sudden mania? For many Western readers unfamiliar with China's minerals map: China supplies around 80% of the world’s tungsten and hosts the most complete upstream and midstream industry chain, so price moves here ripple globally.

Demand surge, tight supply and geopolitics

The price jump is a mix of structural demand and tightening supply. Tungsten is essential for hard alloys used in mining bits, cutting tools and, increasingly, high‑precision manufacturing — think photovoltaic wafer cutting wires, where some factories have switched from carbon steel to tungsten wire to raise yields. Industry sources say the metal also has strategic military applications; reportedly hard alloys are being consumed as geopolitical tensions and regional conflicts boost demand for munitions, drone parts and other defence uses. On the supply side, the China Tungsten Industry Association (中国钨业协会) and industry veterans say domestic ore processing fell from 2020–25, secondary (recycled) tungsten supplies tightened, and expectations of constrained output have amplified price moves.

Winners, losers and the industry response

Upstream miners and processors have reaped the benefits. It has been reported that listed producers such as Xiamen Tungsten (厦门钨业), Zhangyuan Tungsten (章源钨业) and Xianglu Tungsten (翔鹭钨业) flagged materially stronger 2025 results. Downstream tool and hard‑alloy makers are under intense cost pressure; firms describe a shift from "deliver now, pay later" to spot‑cash purchasing, and from monthly pricing to daily or per‑contract quotes. Some larger buyers are locking supplies with long‑term contracts; others are reducing tungsten content, improving tool life or accelerating recycling. Western firms have already pushed closed‑loop recycling (eg. Sandvik and BMW initiatives), and it has been reported that EU and other governments are treating tungsten as a strategic material — the EU has discussed strategic stockpiles while Korea revived a long‑dormant mine in 2025.

Outlook: high for now, but policy and recycling matter

Analysts generally warn the market is likely to remain tight and "easy to rise, hard to fall." It has been reported that industry voices call for policy measures: raise secondary‑tungsten recycling, permit qualified imports of recycled material, and invest in high‑end downstream capabilities so China can sell tungsten "by the gram" rather than "by the tonne." The price shock exposes a larger geopolitical fact: when a critical raw material is concentrated in one country, markets, manufacturers and governments all need contingency plans. Can higher recycling rates and faster upgrading of domestic downstream tech turn a raw‑resource advantage into durable value? That will help determine whether the current boom becomes a new normal or a volatile episode.