Huo Xing Finance reports that on August 24, according to ZeroHedge, citing Almonty Industries CEO Lewis Black, global tungsten supply is facing a severe shortage. Demand for tungsten from the AI, semiconductor, and defense industries continues to rise, while China’s dominant position in raw tungsten supply further amplifies global supply chain risks. The U.S. strategic reserve inquired about tungsten purchases this year, but the initiative was ultimately shelved due to tight spot supply, rising prices, and concerns that large-scale government procurement could disrupt the market. Industry insiders note that non-Chinese tungsten resources currently available to the West are limited, and much of the supply has already been pre-locked in. Supply risks in the semiconductor industry are equally pronounced. Tungsten hexafluoride (WF₆) is a critical material used in advanced memory chip manufacturing to form microscopic tungsten interconnects. Two Japanese companies, Kanto Denka and Central Glass, previously accounted for approximately one-quarter of global WF₆ supply, but ceased production as of July 1 due to their inability to secure high-purity tungsten powder required for manufacturing. The primary source of this raw material is China, which has tightened exports of tungsten-related products since 2025. Currently, Samsung and SK Hynix are accelerating efforts to identify and certify new WF₆ suppliers, with market expectations that WF₆ prices could rise by 70% to 90% in the second half of the year. Meanwhile, a Chinese company has announced plans to add 1,000 tons per year of new WF₆ production capacity. Tungsten supply constraints are also spreading to Japan’s and Western carbide and cutting tool industries. APT (ammonium paratungstate) prices in Western markets remain above $3,000 per metric ton unit (mtu WO₃), with some firms already experiencing raw material shortages. Industry experts believe that tungsten demand exhibits low price elasticity in the short to medium term; even with price increases, downstream manufacturers in automotive and aerospace sectors struggle to reduce procurement. The report highlights that tungsten is not only used in defense and semiconductors—approximately 60% of U.S. tungsten demand and about two-thirds of global demand go into cemented carbides, including industrial products such as cutting tools and drill bits. As AI, defense, and advanced manufacturing expand, the strategic importance of the global tungsten supply chain continues to grow.
Global tungsten supply crisis intensifies as two Japanese WF6 producers halt production
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Summary
Tungsten supply risks are increasing as Kanto Denka and Central Glass suspend WF6 production, impacting 25% of global output. Shortages of high-purity tungsten powder—primarily from China—are compelling companies like Samsung and SK Hynix to seek alternative suppliers. Prices could rise by 70–90% by year-end, as a Chinese firm plans to increase annual capacity by 1,000 tons. Traders should evaluate the risk-to-reward ratio amid tightening market support and resistance levels. China’s 2025 export restrictions further intensify the pressure.
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