Key facts
- New US export controls on tungsten waste and scrap are set to take effect on August 27.
- Domestic sellers must allocate all monthly sales to US buyers for one year.
- Market participants express concern over limited domestic processing capacity.
- Concerns include potential oversupply of tungsten scrap.
- The controls are expected to impact U.S. exporters.
New export controls on tungsten waste and scrap are scheduled to take effect in the United States on August 27. Under these regulations, domestic sellers will be required to direct all of their monthly sales exclusively to U.S. buyers for a period of one year. This policy change has generated significant concern within the market. Participants are worried about the existing limitations in domestic processing capacity, which may struggle to absorb the increased volume of tungsten scrap. There is also apprehension about the potential for an oversupply of tungsten scrap within the domestic market, which could depress prices. Furthermore, the controls are expected to have a notable impact on U.S. exporters who previously relied on international markets for their sales.