China Buys Up U.S. Tungsten, Spiking Prices
Chinese traders are driving up the price of tungsten, a vital metal in defense production, by buying up tons of tungsten scrap in the U.S. (Financial Times, subscription).
- The price of tungsten has shot up by more than 200% in the past year—and the price of tungsten scrap, 350%.
A mad dash: “Sellers [in the U.S.] said they were fielding calls from Chinese buyers looking for the material, while American buyers said they were being outbid by Chinese rivals willing to pay as much as five times the usual price.”
- One scrap recycling company owner told the Financial Times he gets calls from Chinese buyers who “say, ‘Meet in this Home Depot parking lot’ to buy over $20,000 worth of this stuff” and try to get him to deliver it to anonymous third parties.
- Evidence suggests that Chinese buyers are sending U.S. scrap to recycling hubs elsewhere in Asia—such as Vietnam, Taiwan and South Korea—and then passing it on to China.
What they’re buying: Tungsten scrap—which can be crushed and then processed back into tungsten powder—is generally taken from old industrial tools, such as mining equipment and drill bits.
The White House approach: Recognizing the need for more tungsten—which is used in everything from alloys for armaments to superalloys for turbine blades—the Trump administration has reportedly committed up to $1.6 billion to a tungsten project in Kazakhstan.
What else should be done: “Tungsten powers advanced manufacturing sectors, including semiconductors, aerospace and defense,” the NAM wrote in a Monday social media post.
- “Policymakers should work with international partners to counter weaponized export restrictions on critical minerals like tungsten and identify and secure alternative sources of supply.”
