China announces export restrictions on tungsten
China, in particular, has seen increased volatility in supply, new export controls on tungsten (and 24 other rare metals) were introduced no February 4, 2025. The extent of the restrictions is yet unknown and exports will be permitted if they comply with the relevant regulations.
On December 1, 2024, China announced export restrictions on “dual use” goods, that can be used for military or civilian purposes, suggesting tungsten exports may need licences
Output fell by 4.6% in 2023, after the Ministry of Natural Resources set a tungsten ore mining quota at 63,000 metric tons, and this output fell again with a quota of 62,000 metric tons in 2024.
The announced mining quota for 2024’s first batch of tungsten ore has declined since 2020. Many market participants anticipated that tungsten production in 2024 will continue to be tight since the overseas tungsten production will be quite hard to fill the gap.
Environmental inspections across China’s mining regions, including the two major tungsten regions, Jiangxi and Hunan provinces, also disrupted production with many mines and smelters forced to close for maintenance checks.
In 2022, China’s export tax on tungsten concentrates was increased from 15% to 20%.
The reasons for the reduction in exports includes geopolitical tensions with the US over semiconductor sanctions and trade tariffs, declining ore grades, as well as local demand for solar and manufacturing industries and stricter environmental supervision.
