Export Control Announcement Released! Is the Tungsten Market Facing a Major Impact? [SMM Commentary]

SMM February 5 News: On February 4, 2025, the Ministry of Commerce and the General Administration of Customs jointly issued an announcement stating that, to safeguard national security and interests and fulfill international obligations such as non-proliferation, and in accordance with the relevant provisions of the "Export Control Law of the People's Republic of China," the "Foreign Trade Law of the People's Republic of China," the "Customs Law of the People's Republic of China," and the "Regulations on the Export Control of Dual-Use Items of the People's Republic of China," the State Council has approved the decision to impose export controls on tungsten, molybdenum, tellurium, bismuth, indium, and other related items.

Among them, tungsten-related items:

(I) 1C117.d. Tungsten-related materials:

1. Ammonium paratungstate (Customs Commodity Code: 2841801000);

2. Tungsten oxide (Customs Commodity Codes: 2825901200, 2825901910, 2.8259 billion);

3. Non-1C226-controlled tungsten carbide (Customs Commodity Code: 2849902000).

(II) 1C117.c. Solid tungsten with all the following characteristics:

1. Solid tungsten (excluding granular or powder form) with any of the following characteristics:

a. Non-1C226 or 1C241-controlled tungsten and tungsten alloys with a tungsten content of 97% or more by weight (Customs Commodity Codes: 8101940001, 8.102 billion, 8.102 billion);

b. Tungsten-copper with a tungsten content of 80% or more by weight (Customs Commodity Codes: 8101940001, 8.102 billion, 8.102 billion);

c. Tungsten-silver with a tungsten content of 80% or more by weight and a silver content of 2% or more (Customs Commodity Codes: 7106919001, 7.1069 billion);

2. Capable of being mechanically processed into any of the following products:

a. Cylinders with a diameter of 120 mm or more and a length of 50 mm or more;

b. Tubes with an inner diameter of 65 mm or more, a wall thickness of 25 mm or more, and a length of 50 mm or more;

c. Blocks with dimensions of 120 mm × 120 mm × 50 mm or more.

(III) 1C004 Tungsten-nickel-iron alloys (Customs Commodity Codes: 8101940001, 8.102 billion, 8.102 billion) or tungsten-nickel-copper alloys (Customs Commodity Codes: 8101940001, 8.102 billion, 8.102 billion) with all the following characteristics:

a. Density greater than 17.5 g/cm3;

b. Elastic limit exceeding 800 MPa;

c. Ultimate tensile strength greater than 1,270 MPa;

d. Elongation exceeding 8%.

(IV) 1E004, 1E101.b. Technologies and data (including process specifications, process parameters, processing programs, etc.) for the production of items under 1C004, 1C117.c, and 1C117.d.

As a major global exporter of tungsten products, China's implementation of these export control measures has drawn widespread attention from the market. For a long time, China has been committed to fulfilling international obligations such as non-proliferation, and this export control on tungsten products aligns with international mechanisms.

According to SMM statistics, the export volumes of ammonium paratungstate in 2023 and 2024 were approximately 803 mt and 782 mt, respectively, accounting for 4% of total tungsten exports. The export volumes of oxides were approximately 2,699 mt and 3,190 mt, accounting for 14% and 17%, respectively. The export volumes of carbides were 4,433 mt and 4,147 mt, accounting for approximately 22.3% and 22%, respectively.

The addition of tungsten product categories under export control marks a further upgrade in China's strategic resource management. This move helps promote the upgrading of the industry chain, reduce the export of low-priced products, ensure the supply of domestic raw materials, and strengthen China's leading position in the field of strategic resources.

Industry insiders revealed that the focus of this control remains on tungsten products for military use, which account for only 10% to 20% of total exports. Therefore, the overall impact is limited, as approximately 80% to 90% of civilian tungsten products may not be significantly affected by this policy.

Regarding the timing of this policy release, the market has just resumed after the holiday, and many industry participants are adopting a wait-and-see attitude, awaiting clearer policy interpretations and guidance. They generally hold a reserved opinion on this policy and are in the process of digesting and adapting to it, cautiously assessing its potential long-term impact.

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