Tungsten Market

Tungsten Market Analysis

The Tungsten Market is expected to register a CAGR of greater than 8% during the forecast period.

The market was negatively impacted due to COVID-19. Due to the pandemic scenario, several countries around the world went into lockdown to curb the spread of the virus. The shutdown of numerous companies and factories disrupted worldwide supply networks and harmed global production, delivery schedules, and product sales. Currently, the market has recovered from the COVID-19 pandemic and is increasing at a significant rate.

• Over the short term, the worldwide tungsten market is predicted to be driven by growing end-use sectors such as automotive, aerospace, electrical, and electronics, as well as a rise in the need for wear-resistant materials. Tungsten is utilized in electronic and electrical components such as electron emitters, lead-in wires, and electrical contacts, which is driving the global market's expansion throughout the forecasted period.
• However, increasing demand and supply gaps, as well as toxicity caused by the use of tungsten carbide, will limit the expansion of the tungsten market in the coming years.
• Nevertheless, tungsten's melting nature makes it an attractive material for the mining industry, which is expected to create major opportunities for market growth. Increased demand for tungsten carbide in cutting tools and precision equipment enhances market share by driving growth.
• The Asia-Pacific region dominates the global market, with the largest consumption being registered in China.

Tungsten Market Trends

Machine Tools and Equipment Segment is Anticipated to Hold a Significant Share

• Mining and tunneling are two industries that profit substantially from tungsten. Cemented carbides transformed the industry. The growing usage of hard metals in the mining sector and steel machining has resulted in significant growth in tungsten demand. The rising usage of tungsten materials in the weapons sector has elevated metal to crucial status.
• The reduction of metal oxide with zinc, aluminum, or hydrogen produces pure tungsten metal. The metals Mo and W have extremely high melting points and are first acquired as powders. It is compressed by hydrogen at high temperatures to become huge. Tungsten's chemistry is similar to that of molybdenum.
• During the forecast period, the mining and drilling sectors are likely to have the largest share of the tungsten market. Tungsten is an incredible metal, having the greatest melting temperature, tensile strength, and hardness of all metals.
• According to the US Geological Survey, in 2021, the revenue of the top 40 global mining corporations, which account for the great majority of the sector, was around USD 925 billion.
• The primary application for tungsten is in cemented carbides, often known as hard metals, which have a hardness similar to diamond and are excellent for use in cutting applications and wear-resistant materials. Tungsten carbides are largely utilized in metalworking, mining, oil drilling, and building.
• According to the US Geological Survey, globally, an estimated 84,000 metric tons of contained tungsten (also known as wolfram) were produced in 2022. China is by far the world's largest tungsten mining country, accounting for around 85 percent of global output.
• Furthermore, the overall worldwide volume of tungsten reserves amounted to 3.8 million metric tons in 2022. Tungsten, a metal and chemical element, has numerous essential uses, such as in wear-resistant materials, heavy metal alloys, catalysts, and more. It is one of nature's most powerful materials.
• The amount of tungsten included in selected commodities imported into the United States in 2022 was 10,700 metric tons, a 17% increase from 9,200 tons in 2021. China was the biggest supplier of tungsten imports to the United States in terms of contained tungsten, accounting for 30% of total imports in 2022.
• All the aforementioned factors are expected to drive the mining and drilling segment, which also enhanced the demand for tungsten during the forecast period.

Asia-Pacific Region to Dominate the Market

• The global tungsten market is divided into seven geographical areas. China has the biggest market share and will be the top tungsten user during the projection period.
• Asia-Pacific is predicted to increase at a modest rate throughout the projection period. Increasing disposable income in emerging nations is driving demand for convenience items, helping the growth of the worldwide tungsten market.
• Due to the extensively used and interchangeable cutting tools, the carbide sector held the greatest market share in 2022. The fastest increase is anticipated for tungsten alloys, particularly as a result of the expansion of the aircraft industry. The demand for mill goods containing tungsten will continue to expand in addition to its use in electrical and electronic equipment.
• According to Boeing, the expected growth rate of China's commercial aviation market from 2019 to 2038 is broken down by segment. Over that time, China's ground, station, and freight operations market is expected to rise by 5.6 percent.
• In 2022, the automobile industry dominated the tungsten market. The manufacture and assembly of vehicles use tungsten in a variety of ways. Tungsten or its alloys are used in the manufacture of several automobile components, such as tire studs, ball joints, brakes, crankshafts for high-performance cars, and other mechanical components that must withstand harsh conditions or high temperatures.
• According to the CAAM (China Association of Automobile Manufacturers), China manufactured around 210,000 commercial vehicles and 996,000 passenger automobiles in April 2022. The industry produced 1.2 million automobiles during the month, a fall of 46.2 percent from the previous month and 46.1 percent year over year.
• Furthermore, according to the OICA, China produced 27.02 million vehicles in 2022, as compared to 26.12 million in 2021. There was a growth of three percent from the previous year.
• Tungsten is a low-cost metal that, unlike expensive metals, is easy on the pocketbook. Several grades of tungsten carbide are used in jewelry, which affects the price. High-quality tungsten with carbon and nickel, for example, might be more expensive than lower-grade tungsten carbide combinations. Tungsten is a rare metal with the highest melting and boiling points of any element known to man. According to the US Geological Survey, the average tungsten price in 2022 will be roughly USD 270 per metric ton unit of tungsten trioxide.
• As a result, all the causes listed above are projected to increase demand for the tungsten market in the Asia-Pacific region in the future.

Tungsten Industry Overview

• The global tungsten market is fragmented, with a very small number of large players and a large number of small players operating. Some of the major companies are Buffalo Tungsten Inc., Wolfram, ATI (Allegheny Technologies Incorporated), Umicore N.V., and A.L.M.T. Corp., among others (in no particular order).

Tungsten Market Leaders

Tungsten Market News

• January 2022: The Plansee Group reached a formal agreement to buy the Indianapolis-based Mi-Tech Tungsten Metals. Mi-Tech, which employs almost 100 people, is regarded as one of the main providers of tungsten-based products in the United States.
• September 2021: Kennametal Inc. introduced KAR85-AM-K, their most corrosion-resistant tungsten carbide grade for metal additive manufacturing. It is only accessible in conjunction with Kennametal's binder jet 3D printing capability to generate completely completed wear components.