China has imposed restrictions on the export of tungsten

China has imposed new restrictions on exports of tungsten, a key strategic metal used in the manufacture of both weapons and semiconductors. 

The decision aimed at strengthening control over the export of dual-use goods was announced by the Ministry of Commerce of China. Now, from December 1, Chinese companies wishing to export tungsten products will have to obtain licenses.

This decision is due to the escalating relations with the United States, which is seeking to diversify the supply of tungsten. The US Department of Defense plans to ban its contractors from purchasing 80% of tungsten from China starting in 2027. In June of this year, China was the largest source of tungsten imports to the United States, providing 45% of the needs.

In response to China's restrictions, other countries are stepping up tungsten mining. For example, Canada's Almonty Industries is accelerating the resumption of production at a mine in South Korea, planning to reach 50% capacity by the summer of 2025. In the USA, work is underway to resume tungsten mining in Idaho.

Currently, tungsten prices are hovering around $335 per unit. Experts believe that in order to increase the profitability of mining, the metal should cost $50 more.