Why is the price of tungsten so high now?

In today’s material science and industrial manufacturing, tungsten and its alloys are highly sought after materials due to their unique properties. Tungsten, a rare metal with a very high melting point, high density, outstanding hardness and excellent electrical conductivity, is widely used in a variety of fields such as electronics, lighting, aerospace, medical and military. However, in recent years, we have observed that the price of tungsten has continued to rise, and the reasons behind this are multifaceted, involving a number of factors such as changes in the dynamics of the supply chain, growth in industrial demand, and fluctuations in the global economy.

Supply chain constraints
The main sources of tungsten are concentrated in China, Russia, Canada and some other countries, with China accounting for the major share of global tungsten resources. This geographic concentration of output characteristics makes the tungsten supply chain highly susceptible to policies, environmental regulations, export restrictions and other factors. In recent years, in order to protect rare resources and the environment, China and other major producing countries have imposed strict controls on tungsten mining and processing, leading to a tightening of global tungsten supply and rising prices.

Growth of industrial demand
With the development of the global economy, especially the rapid growth of high-tech industries, the demand for tungsten and its alloys is increasing. From the production of cemented carbides and the manufacture of aerospace and military equipment to the demand for medical devices and electronics, tungsten is becoming increasingly versatile and demand continues to grow. This increase in demand, especially when supply is relatively constant, inevitably leads to higher prices.

Investment and market expectations
As an important industrial raw material, tungsten has also become a focus of investor attention. Market expectations of tungsten prices, speculative behaviour of investors, and fluctuations in the financial markets all affect the actual price of tungsten. In some cases, market expectations of future tungsten prices may exacerbate price volatility.

Influence of global economic environment
Fluctuations in the global economy, such as changes in exchange rates and adjustments in trade policies, will also affect the cost and price of tungsten. International trade tensions may lead to higher export costs, which in turn may affect tungsten prices. In addition, a slowdown in global economic growth or other macroeconomic factors may also have an impact on the demand and price of tungsten.

Conclusion
The high price of tungsten is the result of a combination of its unique physicochemical properties, supply chain constraints, growing industrial demand, market investment and the global economic environment. As the global demand for tungsten and its alloys continues to grow, coupled with limited resources, tungsten prices are likely to remain high for the foreseeable future. However, this has prompted industry and research organisations to focus more on the recycling of tungsten resources and the research and development of alternative materials to meet future challenges.