Soaring Tungsten Prices Reshape Global Market: What Electrode Buyers Need to Know

The global tungsten market is experiencing an unprecedented paradigm shift. As the raw material costs continue their historic rally, the tungsten electrode sector—critical for TIG welding, plasma cutting, and thermal spraying—is navigating a new era of pricing and supply chain dynamics. For 2026, industry leaders are signaling that this is not a short-term spike but a structural realignment of the "industrial tooth" .

2025-2026 Review: A Historic Leap in Tungsten Prices

To understand the current electrode market, one must look at the explosive growth of 2025. Industry data indicates that tungsten prices skyrocketed by over 220% in 2025 alone . This momentum has carried forcefully into 2026.

As of February 2026, black tungsten concentrate prices have surged an additional 66.37% since the start of the year . This relentless upward pressure is forcing tungsten electrode manufacturers to adjust pricing strategies continuously. In 2025, a single Chinese industry portal received 287 official price hike notices from 151 different companies, covering sectors from cemented carbide to tungsten electrodes and tungsten wires . Some enterprises issued up to six rounds of price adjustments for the same product line within a single year.

Why Are Tungsten Electrode Prices Rising?

1. Supply Squeeze: The Strategic Resource Tightening

China, which supplies the vast majority of the world"s tungsten, has fundamentally shifted its industrial policy. The government has tightened total mining control quotas—with the first batch of 2025 quotas cut by 6.45% —while intensifying crackdowns on illegal mining . Furthermore, export controls on tungsten products have been strictly enforced, requiring dual-use item compliance checks.

This has created a "supply-dominated" market. Unlike past cycles driven by demand spikes, current prices are propelled by raw material scarcity at the source. CITIC Securities notes that supply chain disruptions have become "normalized and prolonged" .

2. Demand Resilience: From Welding to High-Tech

While traditional welding applications remain stable, demand is exploding in new sectors:

• Semiconductors & Electronics: Tungsten electrodes are vital in specialized manufacturing processes .

• New Energy & Photovoltaics: The solar and EV booms have created a new demand stream .

• Defense & Aerospace: The strategic nature of tungsten makes it irreplaceable in high-temperature applications .

3. The Global Stockpiling Effect

Following export control announcements, international buyers rushed to secure materials, creating a panic-buying atmosphere. This "psychological impact" led to international markets accepting price hikes passively, further fueling the rally .

Market Data: China"s Dominance in Electrodes

According to the "2026-2032 Global Tungsten Electrode Industry Research Report," the global tungsten electrode revenue was approximately $105 million USD in 2025 . China remains the dominant force, holding about 77% of the market share .

Key Producers leading the global market include BGRIMM (北京矿冶研究总院) , ATTL Advanced Materials (安泰天龙) , and SUNRAIN Tungsten, competing alongside international brands like Diamond Ground Products and Wolfram Industrie .

Impact on the Welding Industry

The price surge is cascading down to fabricators. Tungsten electrodes, essential for high-quality TIG welding, are seeing costs rise in tandem with raw APT (Ammonium Paratungstate) and tungsten powder prices.

• APT prices have blasted past the 1.1 million RMB/ton mark in early 2026, a staggering increase of over 400% compared to early 2025 .

• Tungsten powder has surpassed 1800 RMB/kg .

These figures mean that the cost of manufacturing a single thorium tungsten or lanthanum tungsten electrode has increased dramatically, leaving downstream users facing higher procurement budgets.

Future Outlook: What to Expect in 2026

Industry analysts hold a cautiously optimistic to bullish view on tungsten prices for the remainder of 2026.

CITIC Securities predicts that the imbalance between supply and demand is structural. The tight supply at the start of the chain, combined with rigid demand from high-end manufacturing, suggests that prices will remain elevated and continue to climb in the medium to long term .

CICC (China International Capital Corporation) forecasts that the global tungsten supply gap will expand year by year from 2026 to 2028, reaching 19,200 tons by 2028. This deficit—accounting for over 17% of global demand—will underpin prices .

Advice for International Buyers

For companies relying on TIG welding, plasma welding, and thermal spraying, the current market requires strategic adaptation:

1. Secure Long-Term Contracts: With spot prices volatile, long-term partnerships with verified Chinese manufacturers are crucial.

2. Monitor Policy Changes: China"s role as the dominant supplier means its domestic policies directly impact your bottom line.

3. Understand Quality Tiers: While prices are rising, the market is also seeing a structural shift toward high-quality, precision electrodes. Competing on price alone is becoming impossible; instead, focus on value and performance.

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