Tungsten supply chain shifts as US defense rules approach

The United States is moving to diversify its tungsten supply chain ahead of January 1, 2027, when new defense procurement restrictions on certain China-sourced tungsten products take effect. Currently, the US relies on imports for more than 50% of its tungsten needs, a metal critical to aerospace, defense, and advanced manufacturing.

Market data from MetalMiner indicates a significant price gap between Western and Chinese markets. As of late October 2026, ammonium paratungstate (APT) in Rotterdam traded at $278.22 per kilogram, which is 3.74 times the price of Chinese ex-works APT at $74.43. This premium is driven more by defense buying rules than by tariffs.

In response to these supply chain pressures, companies like American Tungsten & Antimony (ASX:AT4) are developing domestic processing capabilities. AT4 is utilizing its Del Sol refinery in Nevada to establish a feedstock qualification program, aiming to create a US processing hub supported by domestic and allied suppliers. This effort addresses a key chokepoint: the US lacks domestic commercial-scale mining and faces constraints in domestic processing capacity.