Chinese buyers spark bidding war for US tungsten scrap: FT

Chinese buyers have been seeking tungsten from scrapyards across the US, leading to record-breaking prices as competition heats up in the global race to secure supplies of the critical mineral, according to the Financial Times.

A recent FT report reveals that Chinese scrap traders have been actively pursuing tungsten supplies in the US since early 2025, preying on a global shortage caused by declining mine output and strong demand from the aerospace, defense and industrial tooling sectors.

China currently dominates global supply of the metal, accounting for more than half of worldwide mined and refined production. However, in recent years Beijing has suppressed its tungsten output with mined quotas, forcing domestic users to look elsewhere to secure the metal.

Bidding war for scraps

This wave of Chinese buying, according to industry insiders cited by FT, had sparked bidding wars for the critical mineral in the US, driving up prices for the metal. Market data from Argus Media shows that scrap prices have surged 350% since May 2025, even surpassing the 200% increase for tungsten metal. In late April, prices of ammonium paratungstate rose to an all-time high.

Industry participants cited by the newspaper said the Chinese buyers had approached long-standing US suppliers directly, often outbidding domestic recyclers. Some dealers even reported being offered premiums of up to five times normal market prices, they said.

While China has prohibited the import of tungsten scrap for environmental reasons, it can still process the metal abroad and then import the allowed products.

The FT, citing data from critical minerals consultancy Project Blue, said exports of tungsten scrap from the US to recycling hubs like the Philippines, Taiwan, Vietnam and South Korea have increased this year, though it could not confirm whether the processed materials were ultimately redirected into China.

Strategic metal

The rush for US tungsten scrap also coincides with export controls that China imposed last year on several related products as a means to leverage its control over the market.

These controls have made tungsten one of Washington’s strategic priorities, given the metal’s use in a wide range of industrial applications including armor-piercing ammunition, missiles, cutting tools and mining equipment.

Last year, FT reported that the US government is considering support of up to $1.6 billion for a planned tungsten mine in Kazakhstan as part of broader efforts to diversify supply chains away from China.