Key facts
- US export controls on tungsten waste and scrap will require domestic sellers to allocate 100% of monthly sales to US buyers for one year starting August 27.
- Limited domestic processing capacity is expected to constrain the policy's near-term impact and potentially cause oversupply.
- US exports of tungsten waste and scrap reached 2,183 metric tonnes from January to June 2026, with Japan, Germany, and South Korea as top recipients.
- Tungsten carbide scrap prices are anticipated to decline as more material remains in the domestic market.
- Companies may seek exceptions for material processed abroad with the intent to re-import tungsten units.
The US is implementing new export controls on tungsten waste and scrap, requiring domestic sellers to allocate 100% of their monthly sales to US buyers for a one-year period starting August 27. This measure, announced by the US Bureau of Industry and Security (BIS), aims to retain tungsten-bearing material within the country and stimulate domestic processing capacity. However, market participants express concerns that the limited refining capacity in the US will hinder the policy's immediate effectiveness and could lead to an oversupply of scrap material domestically.
Many US tungsten scrap dealers currently rely on export markets, particularly in Asia. From January to June 2026, US exports of tungsten waste and scrap reached 2,183 metric tonnes, nearing the total for all of 2025. Japan, Germany, and South Korea were the primary destinations for these exports. Consequently, several exporters anticipate a near-term oversupply in the US market, as material previously destined for export may find limited domestic outlets.
Market participants broadly expect tungsten carbide scrap prices to face downward pressure in the coming weeks. Buyers and sellers are largely adopting a wait-and-see approach to understand the implementation details. Some exporters reported small spot purchases to fulfill existing orders before the controls take effect. Argus last assessed US tungsten carbide inserts and rounds prices at $28-34/lb fob US processor on July 31, marking the lowest levels of 2026, with prices having decreased month-over-month due to processors maintaining adequate supply.
The ruling effectively establishes export controls, though companies can request adjustments or exceptions. Waivers are anticipated for material sent overseas for processing and refining, with the intention of returning tungsten units to the US. Some sources view the measure as a control mechanism rather than a complete ban, with potential exemptions for materials needed for US defense requirements. While defense demand is growing, it represents a smaller portion of global consumption compared to the automotive sector.
Joseph Miller, director at Mission Critical Metals, noted that the US administration's goal is to foster domestic processing capacity. He questioned whether funding from the Department of Defense or Energy would support plant expansions, similar to initiatives in rare earths, antimony, and tin sectors. He added that developing new processing capacity could take years, and existing processors are more likely to expand their capabilities than new entities to build significant new capacity.