The market for tungsten metal is predicted to develop at an accelerated rate with growth set at about $2 billion USD over the next 5 years up to 2028. By close to the end of the decade, this predicted market surge will see the increased value of this important mineral sector to about $7 billion USD. In 2018, the market for tungsten metals was estimated to be worth $4.18 billion USD. However recent predictions estimate that by 2024, the metal’s market value will increase at an astounding pace of 5.69% each year.
What is Fueling the Growth of the Tungsten Metal Market?
The market for tungsten metal is seeing tremendous expansion due to its widespread usage in integrated electrical circuits, rising demand for tungsten carbide in the automotive and defense industries, and China’s large tungsten ore reserves.
Integrated Electronic Circuits for Tungsten
Due to its significance in integrated electrical circuit functions like heat reduction, tungsten is among the most valuable metals as the demand for electrical goods rises exponentially. It may surprise you to learn that the heat output of contemporary computer processors is around the same per square centimeter as that of a kitchen stovetop! A tiny fingernail-sized piece of pure silicon with circuits placed on it is called an integrated circuit, or microchip. To link layers of circuitry with the transistors, tungsten plugs and contacts are used. For electronic circuitry to operate effectively and dependably, a reliable type of heat-reductive technology is needed. Tungsten is frequently used to make efficient heat sinks that remove heat generated inside CPUs, along with copper and other alloyed materials.
Tungsten carbide
Tungsten carbide, used in the automotive sector, is a densely alloyed substance made by melting tungsten with carbon black in a hydrogen-rich atmosphere. Renowned for its remarkable strength, performance, durability, corrosion resistance, and hardness, tungsten carbide is a popular choice in many industries, including the defense and automotive sectors. It also has a high melting point. The substantial market expansion observed in the automobile industry is largely responsible for propelling the tungsten market’s subsequent expansion. High-performance vehicle parts including brakes, ball joints, crankshafts, and tire studs that can withstand intense heat and strain are all comprised of tungsten carbide components.
China’s Tungsten Ore Reserves
With more than 1.8 million metric tonnes of tungsten reserves, China maintained a dominant lead in the world’s tungsten supply in 2022 and this is expected to continue for the foreseeable future. China is followed by Russian and Vietnamese supplies. As of 2022, there were an estimated 3.8 million metric tonnes of tungsten in global reserves.
Market Trends and Obstacles for Tungsten
The estimated tungsten price anticipated in the approach to 2028 has also been influenced by certain market trends for tungsten metal. Among these is the preferred miniaturization of electronic components, which is a result of continuous current innovation that keeps producing ever-smaller electronic goods and equipment. The use of recycled tungsten scrap metal by tungsten producers and manufacturers as a key feedstock source and substitute for conventional tungsten-based ores like wolframite and scheelite is another trend that is having a significant impact on tungsten prices. One such tungsten manufacturer taking advantage of this trend is Australian-based Tungsten Metals Group who own and operates the largest ferrotungsten production facility outside of China. TMG are actively utilizing tungsten scrap metal as a growing portion of its feedstock supply of tungsten in the production of ferrotungsten alloy.
As always, the price of this highly sought-after vital commodity will be significantly influenced by the environmental, safety, and social restrictions surrounding tungsten mining and manufacturing. Approaching the end of the decade, the market faces a major challenge in overcoming the potential for unethical and unregulated sourcing of raw materials for tungsten production, as well as the potentially dangerous effects of said production on the surrounding environment and workers. One significant obstacle to tungsten metal pricing is the current economic recession in China, which has resulted in annual growth rates plummeting from as high as 4.5% to as low as 1%. This slowdown was made worse by the country’s transition out of the Covid era.
The threat to China’s future growth prospects also stems from factors like an aging population and lower productivity. Given how much of the world’s manufacturing is done in China, a slowing economy is likely to have an impact on tungsten results in the future, even with China’s vast critical mineral reserves.