1. Introduction
In 2025, the price of tungsten powder has been on the rise, attracting extensive attention from the market. Tungsten, as a crucial strategic metal, plays an irreplaceable role in various fields such as national defense, aerospace, and new energy. This article will delve into the reasons behind the increase in tungsten powder prices in 2025.
2. Supply - side Constraints
2.1 Reduction in Mining Quotas
In 2025, the Chinese government, in an effort to protect strategic resources and promote sustainable development, significantly reduced the tungsten mining quota. The first - batch tungsten ore mining index in 2025 was only 58,000 tons, a year - on - year decrease of 6.45%. Main producing areas like Jiangxi and Hunan saw their quotas cut by 8% and 6% respectively. This direct reduction in the amount of tungsten ore available for mining has led to a significant decrease in the raw material supply for tungsten powder production. For instance, many small and medium - sized tungsten mines in these regions have been forced to reduce production or even suspend operations due to insufficient quotas.
2.2 Deterioration of Resource Endowment
Over years of exploitation, the global tungsten ore resource endowment has been deteriorating. In China, the average grade of tungsten mines has dropped from 0.42% in 2004 to 0.28% in 2024. To extract the same amount of tungsten, a much larger quantity of raw ore needs to be processed, which greatly increases the mining cost. Moreover, in some traditional tungsten - producing regions around the world, such as Vietnam and Portugal, their tungsten mines are also facing problems like declining ore grades and aging equipment. The resulting high - cost mining situation has led to a reduction in the global tungsten ore production capacity, thus restricting the supply of tungsten powder.
2.3 Impact of Environmental Protection Policies
The increasingly strict environmental protection policies have also had a major impact on the supply of tungsten powder. In the process of tungsten ore mining and tungsten powder production, issues such as waste residue, waste water, and waste gas emissions are prominent. In response to environmental protection requirements, many mining and smelting enterprises need to invest a large amount of capital in environmental protection facilities and treatment technologies. For example, some enterprises in China's tungsten - producing areas need to upgrade their tailings pond treatment systems and waste water treatment equipment, which not only increases production costs but also leads to a reduction in production capacity due to production suspensions during the upgrade process. In some cases, small - scale mines and smelting plants that cannot meet environmental protection standards have been shut down, further reducing the overall supply of tungsten powder.
3. Demand - side Growth
3.1 Surge in Military Demand
In 2025, the global military expenditure exceeded $2.3 trillion. The military field has become a major driving force for the growth of tungsten powder demand. Tungsten - based alloys are widely used in the manufacture of military products such as armor - piercing projectiles and missile components. The demand for tungsten - based alloys in the military field has been increasing at an annual rate of 7% - 9%. For example, due to the continuous consumption of tungsten - alloy armor - piercing projectiles in the Russia - Ukraine conflict, the global military procurement of tungsten increased from 2,200 tons in 2024 to 3,000 tons in 2025. In addition, the United States' "Golden Dome" anti - missile program requires a large amount of tungsten, with a demand of up to 9,000 tons, far exceeding the global annual production capacity. In China, the military orders for tungsten products in 2025 increased by 42% year - on - year, and some enterprises' orders have been scheduled until 2026.
3.2 Growth in New Energy - related Demand
3.2.1 Photovoltaic Industry
The development of the photovoltaic industry has led to a significant increase in the demand for tungsten powder. The penetration rate of tungsten wire in the photovoltaic industry has soared from 20% in 2024 to 60% in 2025. Each GW of photovoltaic modules consumes about 8 tons of tungsten. With China's photovoltaic production capacity accounting for 80% of the global total, it has strongly promoted the growth of tungsten wire demand. For example, Xiamen Tungsten has successfully mass - produced 0.015mm ultra - fine tungsten wire with a yield rate of up to 90% and a production capacity of 30 billion meters per year, closely collaborating with leading photovoltaic enterprises such as LONGi Green Energy.
3.2.2 Battery Field
In the battery field, especially in the development of solid - state batteries, tungsten - based materials such as lithium tungstate have shown great potential. The demand for lithium tungstate as a cathode material in solid - state batteries has increased by 300% year - on - year. Industry - leading enterprises such as CATL and BYD have started research and development work related to tungsten - containing battery materials, which has also driven the growth of the demand for tungsten powder.
4. Policy - related Factors
4.1 Export Control Policies
China has implemented export control policies on tungsten - related products. Since 2025, China has imposed "one - order - one - license" export control on 25 kinds of tungsten products such as ammonium paratungstate. This policy has directly led to a significant reduction in the global supply of tungsten products. As China accounts for more than 70% of the global tungsten ore production and has a complete deep - processing technology system, this export control policy has disrupted the global tungsten supply chain. For example, in the European market, the price of ammonium paratungstate has risen to 302,000 - 315,000 yuan/ton, with a price difference of more than 100,000 yuan/ton between domestic and foreign markets, further strengthening the upward pressure on domestic tungsten powder prices.
4.2 Strategic Resource Protection Policies
Tungsten, as a non - renewable strategic resource, has been given high - priority protection in many countries. In addition to production quota control, some countries are also strengthening the exploration and development of domestic tungsten resources. However, due to the long - term nature and high - cost characteristics of resource exploration and development, it is difficult to make up for the supply gap in the short term. For example, although some new tungsten ore projects in Kazakhstan and other countries are under construction, they will not be able to put into production until 2026 at the earliest, and their production capacity is also limited.
5. Market Sentiment and Speculation
5.1 Hoarding Behavior of Enterprises
Tungsten enterprises generally have a positive outlook on the future market. The holders of tungsten powder and related raw materials are reluctant to sell, resulting in a situation where low - price sources of goods are hard to come by. For example, Zhangyuan Tungsten increased the long - term contract price of black tungsten concentrate by 12,500 yuan/ton in the first half of August 2025, and Xiamen Tungsten increased the APT quotation by 16,500 yuan/ton in a single month. This hoarding behavior has further aggravated the tight supply situation in the market and promoted the rise in prices.
5.2 Impact of Speculative Capital
With the continuous rise in tungsten powder prices, speculative capital has begun to pour into the tungsten market. The influx of a large amount of capital has not only increased market volatility but also further pushed up prices. Some investors believe that due to the scarcity of tungsten resources and the continuous growth of demand, the price of tungsten powder still has room to rise in the future, so they buy a large amount of tungsten - related products and futures contracts, creating a false sense of market prosperity and further fueling the upward trend of prices.
6. Conclusion
In 2025, the increase in tungsten powder prices is the result of the combined action of multiple factors. The reduction in supply caused by mining quota cuts, resource endowment deterioration, and environmental protection policies, the strong growth in demand from the military and new energy fields, the impact of export control and strategic resource protection policies, as well as the hoarding behavior of enterprises and the speculation of capital, have jointly promoted the continuous rise in tungsten powder prices. In the future, as the supply - demand relationship in the tungsten market remains tight and the importance of tungsten in strategic industries continues to increase, the price of tungsten powder may maintain an upward trend. However, market fluctuations are also affected by various uncertainties, such as the progress of new tungsten ore development, changes in global economic conditions, and the adjustment of national policies. Therefore, it is necessary to closely monitor market dynamics and policy changes to make reasonable decisions.
