China Buys Up U.S. Tungsten, Spiking Prices
Chinese traders are driving up the price of tungsten, a vital metal in defense production, by buying up tons of tungsten scrap in the U.S. (, subscription).
- The price of tungsten has shot up by more than 200% in the past yearand the price of tungsten scrap, 350%.
A mad dash: Sellers [in the U.S.] said they were fielding calls from Chinese buyers looking for the material, while American buyers said they were being outbid by Chinese rivals willing to pay as much as five times the usual price.
- One scrap recycling company owner told the Financial Times he gets calls from Chinese buyers who say, Meet in this Home Depot parking lot to buy over $20,000 worth of this stuff and try to get him to deliver it to anonymous third parties.
- Evidence suggests that Chinese buyers are sending U.S. scrap to recycling hubs elsewhere in Asiasuch as Vietnam, Taiwan and South Koreaand then passing it on to China.
What theyre buying: Tungsten scrapwhich can be crushed and then processed back into tungsten powderis generally taken from old industrial tools, such as mining equipment and drill bits.
The White House approach: Recognizing the need for more tungstenwhich is used in everything from alloys for armaments to superalloys for turbine bladesthe Trump administration has reportedly committed up to $1.6 billion to a tungsten project in Kazakhstan.
What else should be done: Tungsten powers advanced manufacturing sectors, including semiconductors, aerospace and defense, the 51勛圖厙 wrote in a Monday social media .
- Policymakers should work with international partners to counter weaponized export restrictions on critical minerals like tungsten and identify and secure alternative sources of supply.
