China will start limiting exports of critical metal tungsten this weekend, just as alternatives to Chinese suppliers of the metal are reopening.The U.S. has not commercially mined tungsten since 2015, according to official records. But this year, one of the world's largest mines for the metal is moving close to resuming production in South Korea.
"Everybody needs more tungsten. That's the message out there right now," he said."The thing that'll prompt more tungsten is not a Chinese ban. It's a Chinese ban causing profitable to mine tungsten."Ecclestone pointed out that tungsten prices have not reacted much to China's announcement.
Jeong Kwang-yeol, the vice governor for economic affairs in Gangwon where Sangdong is located, said the region is willing to offer foreign investors incentives as he hopes the mine can become an anchor for other industrial companies to expand in the region. He cited estimates that the first phase of the mine would create 250 jobs and 1,500 indirect positions.
Demand for tungsten in and outside China is expected to rise, keeping tungsten prices elevated in the near term, said Emre Uzun, ferro-alloys and steel analyst at Fastmarkets. But starting late next year, he expects increased non-China supply to help stabilize raw tungsten prices.