How to Invest in Tungsten (Updated 2023)

Tungsten was discovered in Sweden in the 18th century, and since then has found diverse uses.

About two-thirds of demand for this critical metal is from the mining and drilling industry for use in cemented carbides; mill products and chemicals account for the rest. However, while tungsten has many key uses, the market has been quite turbulent for the last several years — low prices have led to reduced output in some parts of the world.

Global tungsten production came to 84,000 metric tons (MT) in 2022, slightly above the 83,800 MT put out in 2021. As with many metals, China dominates the tungsten-mining space. In fact, according to the US Geological Survey, production of tungsten concentrate outside the country accounts for less than 20 percent of total global supply.

Interestingly, despite being the biggest tungsten producer, China is limited in how much it produces. The Asian nation's government has restricted the number of tungsten mining and export licenses that it awards, and has also imposed quotas on concentrate production and placed constraints on mining and processing.

Tungsten demand has faced pressure from recession threats, but use of the metal is still seen increasing. A global tungsten market report by Business Research Insights forecasts that the sector will grow at a compound annual growth rate of 8.71 percent to reach US$17.96 billion by 2027. Drivers will include an expansion of the mining and drilling industry, the growing use of tungsten in everyday and industrial products and the increasing adoption of tungsten in medical applications.

That optimism has left investors wondering whether tungsten investment is a good idea. Read on for a brief overview of tungsten supply and demand dynamics and ways to invest in tungsten.

This is an updated version of an article originally published by the Investing News Network in 2013.

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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Fireweed Metals and Pivotal Metals are clients of the Investing News Network. This article is not paid-for content.