On January 27, 2026, domestic tungsten powder market quotations surged past the 1.3 million RMB/ton threshold, with prices climbing to a range of 1.325-1.345 million RMB/ton. The average price reached 1.335 million RMB/ton, marking a daily increase of RMB80,000 (+6.29%). The recent sharp surge in tungsten powder prices, reaching multi-year highs, reflects the robust market dynamics of this critical minor metal amid tight supply and strong demand across multiple sectors.
From the supply perspective, the market faces multiple constraints. Domestic tungsten ore mining is subject to strict quota management, limiting overall production growth. Additionally, production in key mining regions is constrained by environmental factors and other regulations, leading to persistently tight spot supply. Slow expansion of new capacity in international markets, coupled with supply chain uncertainties stemming from geopolitical factors, has further exacerbated global resource tightness. Industry-wide inventories remain at low levels, strengthening suppliers' bargaining power.
On the demand side, growth momentum is robust and structural upgrades are underway. Technological advancements in the photovoltaic industry have driven surging demand for high-performance tungsten filaments, becoming a key engine for consumption growth. Simultaneously, military equipment upgrades and strategic reserve requirements provide stable, sustained growth support for high-purity, high-quality tungsten materials. Furthermore, tungsten applications continue to expand in cutting-edge fields like advanced manufacturing and emerging technologies, collectively driving demand diversification and premiumization.
Policy and environmental factors profoundly shape market dynamics. Domestically, resource controls are strengthened through measures like export qualification management, while environmental standards continue to drive industry consolidation. Internationally, trade rules concerning carbon emissions in major markets are being implemented, increasing export compliance costs for related products. These policies collectively raise industry barriers and accelerate market concentration among leading enterprises.
At the macro level, shifts in global liquidity expectations, strategic stockpiling activities, and financial market capital inflows have collectively enhanced tungsten's financial attributes, boosting prices through sentiment and capital flows.
Overall, tungsten prices are expected to remain strong in the short term. Future price movements will depend on the restocking pace of downstream enterprises and the recovery of production capacity in major producing regions. In the medium to long term, against the backdrop of limited global resource supply growth and sustained demand expansion in sectors such as photovoltaics, defense, and high-end manufacturing, the tight supply-demand balance in the tungsten market is likely to persist. The price center is expected to remain at a relatively high level. For relevant enterprises, it is essential to focus on cost management and actively pursue transformation and upgrading toward high-value-added product segments to navigate market volatility.
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