Tungsten's Strategic Surge Amidst Global Supply Dynamics

March 21, 2025 11:00 AM AEDT | By Team Kalkine Media

Global Supply Dynamics

China's control over approximately 80% of the global tungsten supply places it at the strategic center, with recent export regulations further influencing international trade. The move to regulate exports has intensified the quest for non-China sources, especially amidst geopolitical tensions with the US.

Geopolitical Influence on Demand

The European Union and the United Kingdom's drive to bolster defense forces, against a backdrop of perceived shifts in US NATO commitments, has heightened tungsten's value. This demand is reflected in the rising price of ammonium paratungstate (APT), with a notable 13% increase in US dollar terms over the past year.

Market Reactions

International markets, particularly the UK and North America, demonstrate a robust appreciation for tungsten, as evidenced by significant share price increases for companies such as Almonty Industries and Guardian Metal Resources. However, ASX-listed tungsten entities have yet to experience equivalent enthusiasm.

EQ Resources: A National Champion

Within Australia, EQ Resources (ASX:EQR) emerges as a key player, receiving validation through five international offtake agreements for its Mt Carbine and Barruecopardo mines. The current contracts, valued at approximately $US124 million, secure production commitments for up to 24 months and involve major North American and European consumers.

Future Prospects

EQR is poised for strategic growth, not only through enhanced production capacities but also via acquisitions aimed at downstream processing in Vietnam. While its market capitalization remains modest, the global need for secure tungsten supplies presents promising opportunities.

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