ANDRIEVSKII.CH | Global Tungsten Market Faces a New Chokepoint as Ammonium Paratungstate (APT) Processing Capacity Replaces Ore Supply as the Key Constraint

European Ammonium Paratungstate (APT) Prices Hold Firm: Price Spread Between Chinese and Overseas Markets Widens to Around $2,000 per MTU.

APT CIF Rotterdam continues to trade at $2,900–3,100 per MTU, averaging around $3,000 per MTU, despite weaker demand following April's rally.

In contrast, China's domestic APT price has eased to around 595,000 yuan per metric tonne, equivalent to approximately $1,000 per MTU, widening the price spread between Chinese and European markets to roughly $2,000 per MTU.

Why European Prices Remain Elevated

European APT prices continue to hold firm despite sluggish consumption for five key reasons:

• Long-term contracts dominate. Most European APT producers are integrated with downstream powder and cutting tool manufacturers, leaving almost no spot material available.
• Limited independent APT processing capacity. A handful of producers effectively control the spot market, helping keep prices elevated.
• Low processing incentives. Current APT prices offer limited margins for toll processing, reducing incentives to expand output.
• Slow capacity expansion. Building an independent APT processing plant typically requires two to three years, preventing any meaningful short-term increase in supply.

Mine Output Is Rising, but APT Processing Has Become the Bottleneck

New mining projects continue to expand tungsten concentrate supply. Almonty Industries has extended its long-term offtake agreement with GTP for South Korea's Sangdong mine to 21 years, increasing total contracted volume by 40% to 4.41 million MTU. Meanwhile, Tungsten West plc is working to restart production at the Hemerdon mine in the UK during the second half of next year following new financing.

These projects are expected to increase the availability of tungsten concentrate over the coming years. However, growth in APT processing capacity continues to lag behind mine supply.

While Vietnam's Masan High-Tech Materials has partnered with South Korea's GB Innovation to process concentrate into semiconductor-grade APT, there are no major new independent APT processing plants under construction. Existing facilities remain committed to long-term contracts or are already operating near full capacity.

The Market's Constraint Has Shifted

The global tungsten market's principal constraint is no longer ore availability but the shortage of APT processing capacity. Additional concentrate supply cannot be converted into tradable APT quickly enough, limiting material availability outside China.

As a result, overseas manufacturers increasingly rely on recycled tungsten. Japan and Germany have well-developed recycling systems, while scrap trading networks across Europe and Southeast Asia continue to fill part of the supply gap. However, recycled material cannot fully satisfy demand for high-purity tungsten products.

Until substantial new APT processing capacity is built, overseas consumers are likely to remain dependent on imports of higher-value tungsten products from China.

Andrievskii Verdict

The widening disconnect between rising mine output and constrained APT processing capacity is reshaping the global tungsten investment landscape. As processing—not mining—emerges as the industry's primary bottleneck, tungsten concentrate is likely to command an increasing strategic premium outside China.

This dynamic strengthens the outlook for companies capable of supplying tungsten concentrate into Western markets.

Among the larger listed players are Almonty Industries, bringing South Korea's world-class Sangdong mine into production; EQ Resources, operator of Australia's Mt Carbine mine and Spain's Barruecopardo operation; and Tungsten West plc, which is working to restart production at the Hemerdon mine in the UK.

Among the smaller-cap developers are Guardian Metal Resources, advancing Nevada's high-grade Pilot Mountain project; Strategic Minerals plc, developing the Redmoor tin-tungsten project in the UK; and Tungsten Mining NL, which controls several advanced tungsten projects in Australia.

Recent trading activity across listed tungsten equities suggests investors are beginning to price in this structural shift. If that assessment proves correct, the next phase of the tungsten cycle is likely to be driven less by ore scarcity than by the race to secure processing capacity and reliable concentrate supply, making developers with near-term concentrate production increasingly strategic assets for Western supply chains.

Aleksei Andrievskii | Advisory Board Member, Bendura Bank AG | Liechtenstein