The domestic tungsten industry chain as a whole remains in a state of mutual game-playing. Raw materials are locked in sideways consolidation, midstream circulation is sluggish, alloy demand is under pressure, and the scrap market is biased toward the downside. Market participants are largely adopting a wait-and-see stance, with overall liquidity constrained.
On the tungsten ore side, constrained by objective limitations and a market-stabilizing mindset, there are no clear signals of significant volume expansion or contraction for the time being. However, downstream consumption intensity has fallen short of expectations, dampening the atmosphere for deal negotiations. Recent market bargaining has centered on relatively pressured levels, with prices for 55% tungsten concentrate holding firm above RMB 400,000/standard ton. Intermediate smelting and powder segments face significant inverted price pressure: upstream costs cannot be effectively passed through, while downstream demand momentum remains insufficiently released. The market is caught between the difficulty of rising or falling, with limited activity. Ammonium paratungstate (APT) prices are stuck near RMB 590,000/ton, while tungsten powder prices are oscillating around RMB 900,000/ton. Confidence in cemented carbide and its downstream consumption continues to be suppressed by the complex political-economic environment and volatile raw material prices. Orders are being released only according to rigid demand, constraining the overall procurement and sales rhythm. Scrap tungsten prices are relatively under pressure: buyers are applying strong downward pressure on prices, while sellers are unwilling to sell low, perpetuating a stalemate and subdued market atmosphere.
The domestic supply-demand stalemate continues, while overseas competition for tungsten as a strategic resource and capacity layout—catalyzed by supply-chain gaps and profit margins—remains in full swing.
On September 14, 2026, the U.S. Department of War and the Economic Defense Unit announced a $450 million redeemable preferred equity investment in The Elmet Group. The investment aims to strengthen U.S. domestic tungsten production capacity, enhance industrial resilience and military readiness, and secure critical materials required for the defense industrial base. According to the department’s announcement, the investment will also help establish the only independent ammonium paratungstate (APT) facility in North America, addressing a critical bottleneck in tungsten processing and reducing reliance on competitor-dominated supply chains—particularly in market segments where China currently holds a dominant global position, including approximately 85% of global tungsten supply and 40% of molybdenum supply.
The Elmet Group is the only U.S. domestic enterprise integrating the production of tungsten and molybdenum materials and components. It has already supported more than 100 defense programs, including the F-35 fighter jet, Patriot PAC-3 missile, and Trident D5. According to its announcement, more than $165 million of the U.S. Department of War investment will be used to modernize and expand existing critical infrastructure in Lewiston, Maine; Coldwater, Michigan; and Euclid, Ohio, boosting production capacity for high-density tungsten alloys and powder products and strengthening domestic manufacturing capabilities. Approximately $150 million will be invested in the Springer Tungsten Complex in Nevada to restart and expand APT conversion capacity there, creating an important new source of tungsten processing in North America. The Springer mine and concentrator are expected to resume production in the fourth quarter of 2027, with related APT facilities projected to come online in the second half of 2028.
In addition, Elmet has been awarded an Indefinite Delivery/Indefinite Quantity (IDIQ) contract by the U.S. Defense Logistics Agency (DLA) with a minimum value of $150 million and a maximum of $2 billion for the supply of tungsten ore, concentrates, and sodium tungstate to the National Defense Stockpile. The base ordering period is five years (August 31, 2026, to August 30, 2031), with an option to extend for two years (to August 30, 2033). No deliveries will be made prior to the addition of new capacity, so as not to impact supplies from existing U.S. manufacturers.
