Tungsten Prices Surge & Indus Holding Boosts Forecasts | Commodities & Markets News

Tungsten prices have surged to record highs, more than doubling this year and rising 557% since February of last year, driven by geopolitical tensions and tightening supply, particularly due to export controls imposed by China. The APT European benchmark from Fastmarkets now places prices above $2,250 per metric ton unit.

The price increases are impacting companies across the defense and technology sectors, as tungsten is a critical component in drilling equipment, semiconductors, and armor-piercing weaponry. The situation is prompting manufacturers to seek alternative supply sources.

China’s Export Controls Fuel Price Spike

The surge in tungsten prices began after China placed certain tungsten products on its export control list in February of last year during a trade dispute with the United States. According to Project Blue, shipments of restricted tungsten products from China dropped roughly 40% last year. China accounted for approximately 79% of the 85,000 metric tons of tungsten produced globally in 2025, according to the US Geological Survey.

Almonty Industries Responds to Increased Demand

Almonty Industries (NASDAQ:ALM) is ramping up production to meet the growing demand. The company began production at a tungsten mine in South Korea in December and is also developing what could become the first US tungsten mine in a decade. According to the company, US authorities have recently contacted them regarding immediate material availability, with almost half of its South Korean output already allocated to munitions production in Pennsylvania.

Defense Applications Drive Consumption

Demand from the defense sector is contributing significantly to the market squeeze. Project Blue estimates that tungsten consumption linked to defense applications – including helicopters, fighter jets, and ammunition – could increase by 12% this year.

Indus Holding Adjusts Objectives

The rising prices are also impacting companies further down the supply chain. Indus Holding has adjusted its objectives for the 2026 fiscal year, benefiting from the surge in prices for tungsten carbide. The company is reportedly profiting from the favorable market conditions.

The current market dynamics highlight the strategic importance of tungsten and the vulnerabilities associated with concentrated supply chains. The situation is likely to continue attracting attention from both defense and technology industries as they navigate the evolving geopolitical landscape.