China's exports of tungsten to Japan dropped by 50% in April compared to the 2025 monthly average, following Beijing's decision to tighten export controls on the mineral earlier in the year [1]. This significant reduction has compelled Japanese companies, particularly those in the cutting tool sector, to urgently seek alternative sources of tungsten, including scrap material from the United States and Singapore [1]. Tungsten is a critical material used not only in cutting tools but also in chips, electronic equipment, and military ammunition, highlighting the broad impact of these export restrictions [1].
The supply squeeze has prompted major Japanese firms to take action. Mitsubishi Materials announced plans to increase tungsten carbide prices due to the tight supply from China [1]. Meanwhile, Sumitomo Electric is set to boost its tungsten output by 50% in an effort to reduce dependence on Chinese imports [1]. Additionally, Mitsubishi Materials has restarted rare earth recycling operations as a response to the reduced exports from China [1].
The export curbs have also led to record high prices for high-tech minerals, driven by ongoing tensions between Japan and China [1]. The situation has created opportunities for companies outside China, such as a Vietnamese tungsten firm that is reportedly benefiting from the Chinese export restrictions [1].
Overall, the tightened controls on Chinese tungsten exports are causing significant disruptions in supply chains, leading to price increases, strategic shifts toward recycling, and efforts to diversify sourcing away from China [1].
CONCLUSION
China's tightened tungsten export controls have halved shipments to Japan, causing supply chain disruptions and price increases. Japanese companies are responding by seeking alternative sources and ramping up domestic production and recycling. The market impact is high, with ongoing supply risks and elevated prices expected in the near term.