Chinese Export Bans Trigger Global Tungsten Supply Crisis

A severe global tungsten crisis has emerged following the Government of China decision to restrict the export of pure tungsten powder in 2025. This move disrupted critical supply chains, leading Japanese producers Kanto Denka and Central Glass to halt production of tungsten hexafluoride on July 1, 2026. The gas is essential for advanced memory chips, leaving semiconductor giants Samsung and SK Hynix facing projected price increases of 70% to 90% as they search for new suppliers.

Demand for the metal is surging due to the AI boom and defense requirements, though industrial cemented carbides remain the primary volume driver. In the United States, the Defense Logistics Agency triggered market panic during an attempt to replenish strategic stockpiles because of a critical shortage of non-Chinese material. The U.S. has responded by imposing export restrictions on tungsten-containing scrap to preserve domestic reserves.

Almonty Industries has emerged as a primary alternative source. Its Sangdong mine became fully operational on July 1, 2026, providing a critical non-Chinese supply of tungsten to a market struggling with geopolitical volatility and high demand from the technology sector.