Japan Diversifies Tungsten Supply Post-China Export Controls, Boosting Recycling and New Production

SMM learned that overseas mine production cuts, extreme weather in South America, and declining ore grades and recovery rates were intensively discussed during a recent industry association meeting. These concerns strengthened expectations of tighter overseas molybdenum supply, stimulated some buying and pushed molybdenum oxide prices to around $34/lb Mo. Supply-side expectations continue to support prices, while some mine production, grade and recovery issues may not improve materially until around 2028. China’s market also remains firm, but elevated prices are discouraging chasing. Well-funded buyers, low-inventory users and producers with firm orders continue to purchase as needed, while processors mainly restock to maintain production.

Mongolia’s NSO reported molybdenum concentrate output, on a contained-metal basis, of 424.4 tonnes in July 2026, down 1.3% MoM and 17.0% YoY. Jan–Jul output totaled 3,290.5 tonnes, up 9.3% YoY.

Peru’s Ministry of Energy and Mines (MINEM) reported molybdenum production of 3,029 tonnes in June 2026, up 6.5% MoM and 5.4% YoY. H1 output totaled 18,777 tonnes, down 4.5% YoY. Sociedad Minera Cerro Verde produced 943 tonnes in June, up 76.1%, while Anglo American Quellaveco produced 479 tonnes, up 25.6%. Southern Peru Copper Corporation’s output declined 16.0% to 1,065 tonnes. Gains at Cerro Verde and Quellaveco supported the monthly rebound, although cumulative supply remained below last year.