Key facts
- U.S. shipments of recycled tungsten to Japan have surged due to Chinese export restrictions.
- Tungsten scrap prices have quadrupled year-over-year, with U.S. prices rising over 200% and scrap prices jumping 350% since May 2025.
- China's tungsten exports to Japan were completely halted from February to April 2026.
- Japanese companies are diversifying procurement to the U.S. and Europe and expanding recycling efforts.
- Tungsten is a critical material for defense, aerospace, and industrial tools.
U.S. shipments of recycled tungsten to Japan have surged as China's export restrictions on critical minerals prompt companies to seek alternative supply sources. Tungsten scrap prices have quadrupled year-over-year, driven by intense competition and Chinese buyers actively seeking material globally.
Chinese buyers, including traders, recyclers, and manufacturers, have been aggressively seeking tungsten scrap across the U.S. since early 2025. This intensified search has led to bidding wars, with Chinese buyers reportedly offering significantly above prevailing prices. Tungsten scrap, typically sourced from worn industrial tools, is a crucial intermediate material that can be reprocessed into tungsten powder or carbide for new machinery and tools.
The market strain follows Beijing's early 2025 export restrictions on tungsten and other critical minerals, coupled with reduced mining quotas. China, which accounts for a substantial portion of global tungsten supply and demand, has tightened controls to exert political influence. This has left manufacturers outside China exposed to potential shortages.
The competition for tungsten is heightening concerns over U.S. supply security, as the metal is vital for defense applications like bullets and missiles. Some U.S. industry figures advocate for stopping scrap exports to China, while the U.S. government is exploring policies to bolster domestic supply chains, including potential funding for overseas mines.
Data indicate significant price pressures, with tungsten prices reportedly rising over 200% and scrap prices jumping 350% since May 2025. Japanese imports of tungsten-related products from China saw a 50% drop in April compared to the monthly average, and exports were completely halted from February to April 2026. In response, Japanese corporations are accelerating supply chain reorganization, diversifying procurement to the U.S. and Europe, and expanding investments in tungsten recycling facilities. However, some U.S. market participants argue that a U.S. export ban would be detrimental due to insufficient domestic processing capacity.