Prices of three niche commodities—tungsten, sulfur, and helium—have surged sharply in recent weeks, with some increases outpacing oil, which itself has climbed by more than 50% in March, putting Brent on track for a record month [1]. The surge in these commodities is attributed to ripple effects from the Middle East conflict, particularly the Iran war that began on February 28, which has further restricted production of semiconductors essential for artificial intelligence advances [1]. Beijing had already begun ramping up control over these critical supplies before the Iran war, partly due to escalating tensions with the U.S. over the past few years [1]. China started restricting tungsten exports just over a year ago and called for tighter limits on sulfuric acid exports in December [1]. Helium imports into China rose by 15.7% in 2025, following a nearly 65% surge in 2024, according to Wind Information [1]. The Iran war and constraints on the Strait of Hormuz—a key shipping route for energy and chemicals—have exacerbated shortages, tipping some markets from oversupply to undersupply [1]. Tungsten, which is vital for semiconductor chip connections, hit a record high of over $3,000 late last week, marking a surge of well over 50% for the month and more than tripling in price since late December [1]. Sulfuric acid, used to clean chip wafers, and helium, essential for preventing unwanted chemical reactions in semiconductor manufacturing, have also seen significant price increases [1]. According to Goldman Sachs analysts, the risk of disruption in chemicals as raw materials for manufacturers in selected segments is higher than expected, based on feedback from nearly 40 commodity-related meetings and site visits in China [1]. While the Chinese supply chain is viewed as more resilient than many peers, disruptions in chemicals pose a higher-than-anticipated risk [1].
CONCLUSION
The sharp rise in prices for tungsten, sulfur, and helium highlights the vulnerability of global supply chains to geopolitical tensions and export controls, particularly those imposed by China. These developments are likely to impact semiconductor production and related industries, with analysts warning of higher-than-expected risks of disruption. The market is reacting strongly, indicating significant concern over future supply stability.