CME Group is preparing to launch a tungsten futures contract as global remilitarisation and soaring prices drive western companies to secure supplies. The Chicago-based exchange plans to launch the contract by the first quarter of 2027. The contract will be financially settled, allowing buyers to manage price exposure but not take physical delivery of the metal.
CME Group managing director Jin Hennig said the contract gives companies an opportunity to hedge and lock in prices in a volatile market. Hennig said the concept has attracted considerable interest, especially from traders who source and supply tungsten. The contract will be linked to Fastmarkets prices for ammonium paratungstate at the Rotterdam and Baltimore trading hubs. Ammonium paratungstate is a powdered form of tungsten used in manufacturing.
Tungsten is prized for its hardness and high melting point. Manufacturers use tungsten in armour-piercing bullets and other munitions, as well as drill bits and other machinery. Tungsten prices have soared this year because China, which dominates production, has restricted exports and squeezed global supplies. The market is opaque, with most deals conducted bilaterally or through traders. Similar dynamics affect other critical minerals whose exports Beijing has restricted, including several rare earth elements and gallium, which the semiconductor industry uses.
TechMet SCM chief executive Quentin Lamarche said the contract offered an important new tool for managing commercial risks in physical tungsten trading and logistics. Grondmet managing director Maarten Gassmann said the contract would allow tungsten users to plan operations with greater cost certainty. Governments including those of the US and UK have recently taken equity stakes in tungsten groups through financing packages supporting supply chains outside China.
Analysts say the market has recently cooled after a strong rally as buyers have resisted elevated prices. Fastmarkets' Andrew Wells said prices remain well above historical norms, but buyer resistance is growing because prices have been so elevated.
CME Group has launched a range of metals contracts in recent years, including lithium and cobalt futures. Trading activity across CME Group's metals products rose 41% in the first nine months of 2026 compared with the same period last year. Daily trading volume across CME Group's metals products reached 1.2 million contracts during that period.
CME Group to Launch Tungsten Futures in Q1 2027 Amid Rising Demand
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Summary
CME Group will launch a tungsten futures contract in Q1 2027 to meet growing demand in the futures market. The contract will be financially settled using Fastmarkets prices for ammonium paratungstate in Rotterdam and Baltimore. Tungsten prices have risen due to increased use in munitions and manufacturing, compounded by Chinese export restrictions. CME has also expanded into lithium and cobalt futures. Traders are advised to keep an eye on altcoins to watch as market dynamics evolve.
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