Market Alert: The Emerging Tungsten Supply Crisis

Market Alert: The Emerging Tungsten Supply Crisis

It is not widely reported in the news, but the world is currently facing a significant supply challenge involving Tungsten

Since the beginning of 2025, the price of tungsten powder has increased roughly 750%, driving the cost of M2 high-speed steel to double since late last year.

This has important implications for industries that rely on cutting tools and precision machining.

China currently controls 80–85% of global tungsten mining and refining, while Vietnam and Russia  together account for roughly 7%, leaving very limited alternative supply sources.

Globally, 50–60% of tungsten consumption is used to produce Tungsten Carbide the essential material used in cutting tools and wear parts.

Key industries dependent on tungsten include:

Within the fastener and thread insert industry, tungsten is rarely present in the finished fastener or insert itself. However, it is critical in the tooling used to manufacture them, including taps, drills, dies, and forming tools.

As a result, supply disruptions and price volatility in tungsten can have significant downstream effects on machining costs, tooling prices, and manufacturing across the global industrial supply chain.