The global tungsten market experienced a sharp tightening in supply conditions in early 2026, with prices rising to record levels amid export restrictions, geopolitical tensions, and increasing demand from both defense and industrial sectors.
According to a March 16 Bloomberg report, tungsten prices more than doubled during the year and rose 557% since China added certain tungsten products to its export control list in February 2025. The metal, commonly traded in the form of ammonium paratungstate, or APT, an intermediate chemical compound used to produce tungsten metal, reached approximately US$2,250 per metric ton unit based on the European benchmark from Fastmarkets. Bloomberg stated that “manufacturers are facing a squeeze on supplies of a key metal used in weapons and semiconductors,” as buyers competed for limited material outside China.
Tungsten is a high-density metal used in a range of applications, including drilling equipment, semiconductor manufacturing, and armor-piercing munitions. Its density allows projectiles to retain momentum and penetrate hardened targets, making it a critical input in modern weapons systems. According to Bloomberg, military demand contributed to the recent price acceleration, particularly as conflicts in the Middle East intensified and inventories were depleted. George Heppel, vice president of commodity research at BMO Capital Markets, stated that “I have never seen a market as tight as tungsten is right now,” adding that supply constraints were more severe than those seen in other recent commodity cycles.
China’s dominant position in the tungsten market remained a central factor in the supply imbalance. According to the U.S. Geological Survey data cited in the Bloomberg report, China accounted for approximately 79% of global tungsten mine production in the previous year. Export restrictions introduced during a trade dispute with the United States reduced shipments of certain tungsten products by about 40%, according to Project Blue, further tightening global availability. At the same time, declining ore quality and stricter mining quotas in China contributed to reduced output.
Supply Constraints and Military Demand Intensify Market Pressure
Reuters reported on March 23 that rising military activity further strained supply chains. The report stated that “most, if not all” munitions used in recent conflicts contained tungsten, and unlike industrial applications where the metal can be recycled, tungsten used in munitions is consumed upon detonation. Reuters noted that the ongoing conflicts in Ukraine and Iran had accelerated depletion of both weapons stockpiles and the underlying metals required to produce them.
According to Reuters, tungsten prices in the Rotterdam APT market rose from under US$400 per metric ton unit a year earlier to more than US$2,200, making it one of the strongest-performing commodities, outperforming gains in copper, gold, and oil. The publication stated that tungsten products were trading at their highest levels in at least 90 years, citing data from Project Blue and the U.S. Geological Survey. It added that global supply remained constrained, with Chinese exports declining by nearly 40% following the implementation of export controls, while domestic consumption within China increased.
Efforts to develop alternative supply chains outside China were underway but remained limited in the near term. Bloomberg reported that Western governments were seeking to reduce reliance on Chinese supply, including efforts to develop new mines in the United States. However, new production capacity in regions such as Spain, Brazil, Australia, and the United States was expected to take approximately two years to materialize, according to industry estimates cited in the report.
At the same time, Reuters noted that non-Chinese production increased by approximately 20% year over year to 19,000 tons, driven in part by new projects in Kazakhstan. Additional initiatives included U.S.-backed investment in tungsten development projects and funding for recycling capacity, although these measures were described as insufficient to offset near-term supply constraints.
Despite its strategic importance, tungsten remained a relatively small and opaque market compared to other industrial metals. Bloomberg estimated the market value at approximately US$16 billion, or about 5% of the copper market at current prices. The metal does not trade on major exchanges, contributing to limited liquidity and price transparency.
A separate March 24 industry report from Coherent Market Insights indicated that the U.S. tungsten carbide market, which includes hard materials made by combining tungsten with carbon for use in cutting and wear-resistant tools, was experiencing increased demand driven by industrial applications and technological advancements. The report stated that “as global demand surges, the U.S. Tungsten Carbide Market is witnessing transformative growth across applications, geographies, and verticals,” reflecting broader demand trends tied to manufacturing, construction, and energy sectors.
Additional market data indicated that supply shortages extended across global markets. Reports from Shanghai Metals Market cited elevated APT prices in Rotterdam in the range of US$2,150 to US$2,250 per metric ton unit, with some spot transactions reaching as high as US$3,000 per metric ton unit amid urgent buying activity. Inventory levels among European and U.S. producers were described as near depletion, contributing to a seller-dominated market environment.
The tightening supply-demand dynamics in the tungsten market have placed increased attention on companies operating within the sector, particularly those positioned to develop or expand non-Chinese sources of supply. As governments and manufacturers seek alternative production and processing capacity, companies with exposure to tungsten exploration, development, and downstream applications have become more relevant to the evolving critical minerals landscape. The following companies are among those operating within this space.
Allied Critical Metals
Allied Critical Metals Inc. (ACM:CSE; ACMIF:OTCQB; 0VJ0:FSE) is advancing a tungsten-focused development strategy in Europe, positioning its 100% owned Borralha Tungsten Project in Portugal as a potential source of supply in a market currently defined by tight availability and rising prices. The company’s primary asset was previously the largest tungsten producer in Europe, and aligns with the broader efforts to expand non-Chinese tungsten production.
The company released additional details from its initial Preliminary Economic Assessment, or PEA, for Borralha, an early-stage technical and economic study used to evaluate the viability of a mining project. According to the disclosure, the project demonstrated an after-tax net present value, or NPV, of CA$473.4 million (US$346.6 million) at an 8% discount rate, with an internal rate of return, or IRR, of 48.8% based on a tungsten price of CA$1,365 per metric ton unit WO3. The company reported a payback period of approximately 2.2 years from the start of commercial production.
The Borralha PEA outlined an underground mining operation with an initial capital cost of approximately CA$125 million (US$91.5 million). Sustaining capital was estimated at approximately US$87 million, with total life-of-mine capital expenditures of approximately US$178 million. The development plan includes underground mine construction, a processing plant, and supporting infrastructure.
At a tungsten price of US$1,000 per metric ton unit WO3, the project was expected to generate average annual revenue of approximately CA$252.52 million (US$184.89 million), with average annual EBITDA of approximately CA$142.18 million (US$104.10 million) and free cash flow of approximately CA$96.28 million (US$70.49 million). Life-of-mine revenue under this scenario was estimated at CA$2.78 billion (US$2.3 billion), with total free cash flow of approximately CA$1.06 billion (US$775.43 million).
The PEA evaluated multiple pricing scenarios, reflecting the sensitivity of project economics to tungsten prices. Under a base case of CA$962 per metric ton unit WO3, the project showed an after-tax NPV of CA$182.7 million (US$134.0 million) and an IRR of 27.2%, with a payback period of 3.8 years from construction. Under a higher price scenario of CA$2,049 per metric ton unit WO3, the after-tax NPV increased to CA$963.8 million (US$706.4 million), with an IRR of 78.4% and a payback period of 1.2 years.
Roy Bonnell, CEO and Director of Allied Critical Metals, stated in a company news release, “Following the release of our initial Borralha PEA, we received strong investor interest in additional project-level detail.” He added that “the additional payback presentation provides another useful reference point for investors evaluating project returns and the strong leverage Borralha has to tungsten prices.”
Operationally, the mine plan outlined average annual production of approximately 1,708 tonnes of WO3, with a processing rate of approximately 1.4 million tonnes per year and an average grade of approximately 0.20% WO3. Operating costs were estimated at approximately US$59.3 per tonne processed. The project also incorporated grid power access, water recycling systems, and centralized surface infrastructure to support operations.
The project has progressed through key permitting milestones, including the receipt of an Environmental Impact Declaration in January 2026, allowing advancement toward detailed engineering and development. The company indicated that Borralha is advancing through Portugal’s mine licensing process, with construction and production targeted for approximately 2027. In parallel, a fully funded 20,000-meter drill program is underway to support resource expansion and potential extension of the mine’s initial 11-year production plan.
In addition to Borralha, the company is advancing the Vila Verde Tungsten-Tin Project, where a pilot plant is expected to process approximately 150,000 tonnes per year, producing an estimated 250 tonnes of WO3 annually under current design parameters. Construction of the pilot plant is expected to begin in 2026, with operations projected later in the year. The company also reported signing a letter of intent with Global Tungsten and Powders in Pennsylvania for the sale of tungsten concentrate, with additional discussions ongoing with other refineries.
2Insiders own approximately 31% of Allied. About 16% is held by institutions and institutional investors, and the rest is held by retail shareholders.
The company has 171 million common shares issued and outstanding and 214 million common shares on a fully diluted basis. Its market cap is ~CA$220 million. Its 52-week range is CA$0.20–CA$1.48 per share.
American Tungsten
American Tungsten Corp. (TUNG:CSE; TUNGF:OTCQB; RK9:FSE) is advancing tungsten-focused exploration and development in the United States, positioning its IMA Mine Project as part of broader efforts to expand domestic supply of the critical metal. The company’s recent financing and investment activity reflects ongoing efforts to support project advancement within a tightening global tungsten market.
The company reported that it completed its previously announced minority investment in Viking Mines Limited after subscribing for 150,000,000 ordinary shares for aggregate consideration of AU$750,000. According to the March 17 news release, the transaction followed approval from Viking Mines shareholders and formed part of a broader financing completed by Viking Mines. The company stated that “it has completed its previously announced minority investment in Viking Mines Limited.”
American Tungsten also announced that it closed a bought deal private placement for aggregate gross proceeds of CA$40,002,060. The financing was conducted by Stifel Canada as lead underwriter and sole bookrunner, on behalf of a syndicate that included Integrity Capital Group Inc. and Canaccord Genuity Corp. The offering consisted of 14,286,450 units priced at CA$2.80 per unit, including the full exercise of the underwriters’ option.
Each unit included one Class A common share and one-half of one warrant, with each full warrant exercisable at CA$3.75 until March 18, 2029. The company reported that the underwriters received a cash commission of approximately CA$2,400,123, representing 6.0% of the gross proceeds, along with 857,187 broker warrants exercisable until March 18, 2028.
The company stated that net proceeds from the financing are expected to be used to advance exploration and development at the IMA Mine Project, as well as for working capital and general corporate purposes. The securities issued under the offering were distributed through private placement exemptions in Canada, the United States, and other agreed jurisdictions, and remain subject to a four-month hold period under applicable securities laws.
Project advancement at IMA has been supported by ongoing exploration programs. According to the company’s investor materials, a 15,000-foot drill program was underway, targeting multiple zones and designed to validate historical drilling results. The program was intended to support a future mineral resource estimate and metallurgical testing, which are required inputs for economic studies such as a preliminary economic assessment.
The company also outlined additional development initiatives, including evaluation of on-surface tailings for potential processing and efforts to expand its land position through a potential acquisition of the Mazda claims. The investor materials indicated that any such acquisition would be subject to due diligence, financing, and regulatory approvals.
Planned milestones included continued drilling, metallurgical testing, and preparation of an updated mineral resource estimate, followed by a preliminary economic assessment and, subsequently, pre-feasibility and feasibility studies. The company also reported that it had progressed a non-binding letter of intent for US$25.5 million in potential debt financing and a non-binding agreement with a U.S.-based offtake partner.
1In third-party coverage, John Newell of John Newell & Associates assigned the company a “Speculative Buy” rating on March 17. He wrote, “As with all junior mining companies, risks remain. Resource delineation is ongoing, commodity prices can fluctuate, and development timelines are never guaranteed,” adding that “based on current fundamentals and improving technical conditions, American Tungsten Corp. I believe the company is a Speculative Buy.” He listed a next target price of CA$4 and a broader target of CA$7.
22.36% of American Tungsten is held by management and insiders. The rest is retail.
The company has approximately 63.4 million shares outstanding, including about 40.46 million free float shares, and a market capitalization of roughly CA$161 million. Over the past 52 weeks, the shares have traded in a range of CA$0.47 to CA$4.90.
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1. Disclosure for the quote from the John Newell article published on May 17, 2026
As always it is important to note that investing in precious metals like silver carries risks, and market conditions can change violently with shock and awe tactics, that we have seen over the past 20 years. Before making any investment decisions, it’s advisable consult with a financial advisor if needed. Also the practice of conducting thorough research and to consider your investment goals and risk tolerance.
2. Ownership and Share Structure Information
The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.