A perfect storm of Chinese supply restrictions and unwavering strategic demand has sent tungsten prices to record highs, thrusting a Vietnamese miner into the global spotlight.
The story begins with a fundamental shift in supply. First, in February 2025, China's Ministry of Commerce imposed an export licensing system on key tungsten products. This created a significant bottleneck, making it much harder to get material out of the country. Second, just a couple of months later, Beijing followed up by cutting its first-round mining quota for 2025 by over 6%, structurally tightening the availability of raw ore at its source.
The market's reaction was swift and dramatic. Prices for Ammonium Paratungstate (APT), a crucial tungsten intermediate, began a steep climb. After ending 2025 around $900 per metric ton unit (MTU), prices shot up to a record of about $1,100 in January 2026. But the real shock came in February, when European benchmark prices surged to an astonishing $1,800/MTU amid a buying panic fueled by depleted inventories.
This supply crisis has forced the world to look for alternatives, and all eyes have turned to Vietnam. The country is home to the Nui Phao mine, the largest known tungsten deposit outside of China, operated by Masan High-Tech Materials (MSR). As the primary 'ex-China' anchor for the tungsten supply chain, MSR has seen its market valuation soar, reflecting its newfound strategic importance.
This isn't a simple commodity story, because demand for tungsten is highly inelastic. It is irreplaceable in critical applications like cutting tools for manufacturing, high-temperature components in aerospace, and armor-piercing projectiles for defense. Recognizing this vulnerability, the U.S. Department of Defense has already begun investing in domestic supply projects, underscoring tungsten's status as a strategic national security asset.
In essence, the Vietnamese tungsten story is about a company and a country benefiting from a powerful combination of a supply shock and a geopolitical push for de-risking. While challenges remain, such as navigating complex U.S. defense procurement rules like DFARS, Vietnam's role as a key pillar in the non-Chinese tungsten supply chain seems secure for the foreseeable future.
- APT (Ammonium Paratungstate): A key intermediate chemical compound refined from tungsten ore, which is then processed into tungsten metal powder and other products.
- Ex-China: A term referring to markets, supply chains, or assets that are located or operate outside of mainland China.
- DFARS: The Defense Federal Acquisition Regulation Supplement, a set of rules governing procurement for the U.S. Department of Defense, which includes restrictions on the origin of specialty metals like tungsten.