China sends one of the West’s most vital materials soaring

Bloomberg

The price of one of the most critical materials for the Western world’s economy and defenses is spiking faster than any major commodity.
Tungsten, used to harden steel in ballistic missiles and in drill bits, has surged more than 50 percent in the last two months amid growing concern about supply cutbacks in China, where about 80 percent of the metal comes from. The country is clamping down on polluting mines and enforcing production quotas.
“The Chinese have been trying to impose control over the production in tungsten,” said Mark Seddon, senior manager at Argus Consulting (Metals). “They’ve used environmental policy to clamp down on non-quota production.”
The price of tungsten in Europe has jumped 52 percent since early July, according to Metal Bulletin Ltd. The advance has beaten all 22 major materials in the Bloomberg Commodities Index. Tungsten has gained for six straight months, the longest rally since 2012.
China limits supply to about 91,300 metric tonnes a year, but routinely breaks its quota by as much as 50 percent, Seddon said.