European tungsten prices surged this month to their highest in more than a decade, as traders scrambled for supplies after China imposed export curbs and reduced quotas on the metal used in aerospace, electronics, and military applications.

China imposed export controls on tungsten, tellurium, molybdenum, bismuth and indium, in retaliation to US tariffs, in February.

Prices of tungstate ammonium paratungstate (APT), used to make tungsten metal, rose to $400 per metric ton unit (mtu) in the European spot market, the highest since late 2013, according to traders. Prices have gained 18% since February.

"People are looking for alternative sources, but they are not so easy to find because of natural scarcity of the metal," a minor metal trader said.

China's first batch of mining quota for tungsten ore this year is set at 58,000 tons, marking an annual decrease of 6.5%.

China dominates global tungsten production, contributing more than 80% of global supplies at 67,000 tons in 2024, according to US Geological Survey (USGS).

"Since the Chinese export ban was announced there has been an over reliance on scrap supplies, but now those are running thin, and there's growing panic over the inability to secure new primary tungsten material," said Oliver Friesen, CEO at Guardian Metal Resources.

Tungsten is an exceptionally hard metal, surpassed in strength only by diamonds, and is used in manufacturing items such as cutting tools, armour plating, and military-grade artillery shells.

Last week, Almonty Industries announced it has entered into an offtake agreement to supply tungsten oxide solely for U.S. defence applications. Almonty specializes in tungsten mining and exploration, with operating mines in Spain, Portugal and South Korea.

"Almonty can produce enough tungsten for US/EU/Korea defense demand but not enough for the entire U.S./E.U./Korea market, defense and civilian combined," Lewis Black, president and CEO of Almonty Industries said.

The United States has not engaged in commercial tungsten mining since 2015 and remains highly dependent on imports to meet its demand.