China chokes tungsten exports to the United States
The phone has been ringing off the hook for Lewis Black after China imposed export controls on tungsten, a niche metal mined by his firm that’s crucial to weapons manufacturing.
The chief executive of North America’s Almonty Industries Inc. said his customers are in a “state of disbelief” following Beijing’s move on Tuesday, one of a suite of measures announced as a riposte to tariffs placed on Chinese goods by the Trump administration.
China accounts for about 80 per cent of the world’s tungsten output, and there are concerns the government could add measures around tungsten scrap that would further constrict its availability. Almonty’s stock in Toronto has soared 41 per cent over the last two days as investors price in scarcer supply of the super-dense material used in armour-piercing munitions, as well for engine parts and chip making.
“It’s the warning shot, because we cannot exist without it,” Black said in a phone interview from his base in New York on Thursday. “Our economy, manufacturing, defence, everything, is so dependent on it. And yet, Russia, China and North Korea have about 90 per cent of the output.”
China has banned imports of tungsten scrap for a number of years, citing environmental concerns over how it’s processed. If it were to lift the embargo, it could suck in more supply and limit what’s left for other countries. That would create “a situation where it’s very difficult for my customers to compete with China,” said Black.
“The question is, how much will China tighten the screw to be heard?” he said. “I think the news was bad, but I think it’s going to get worse.”
The tungsten market is valued at roughly US$5 billion, making it a relatively niche market compared with other major metals, such as
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