CME Group Plans Tungsten Futures Amid China Export Curbs and Soaring Prices

CME Group announced plans to launch financially settled tungsten futures by early in the first quarter of 2027[1][11][12]. This initiative directly responds to significant market volatility, which saw overall tungsten prices increase by over 200% in 2025[1][11]. China's stringent export restrictions and escalating global demand for defense-related materials have driven this instability[1][6].

This development matters to industries relying on tungsten, a critical mineral for advanced manufacturing, semiconductor technologies, and defense applications[1][12][15]. The futures contract aims to provide a formal hedging mechanism, improve price transparency, and allow clients to manage exposure and plan operations with greater cost certainty amidst supply chain disruptions[1][11][12].

What the records show

The CME Group intends to list the new tungsten futures contracts on COMEX[1][11]. These contracts will be cash-settled and based on the Fastmarkets assessment for tungsten Ammonium Paratungstate (APT)[1][11]. Jin Hennig, global head of metals at CME, stated that clients are looking to hedge their exposure and improve price transparency[11][12]. Tungsten is classified as a critical mineral by the U.S., the E.U., and Japan[11][12]. The metal currently has an active spot market but lacks a dedicated futures market[12]. The CME Group’s metals business has seen record volume in the first nine months of this year, with 1.2 million contracts traded daily[12].

The Timeline

China, identified as the largest global supplier of tungsten, began tightening its export controls with new licensing requirements in February 2025[6][7]. These controls escalated through late 2025 and 2026[1][6]. By December 26, 2025, China's Ministry of Commerce cut the number of companies authorized to export tungsten to just 15 for 2026 through 2027[8][9]. Less than two weeks later, on January 6, 2026, China further banned exports of specific dual-use tungsten items, including ammonium paratungstate, tungsten oxide, and tungsten carbide, to Japan when the end use is military or enhances military capability[8]. Market data indicates that APT exports from China fell by 70%, from 782 tonnes in 2024 to 243 tonnes between January and November 2025[8]. These restrictions led to dramatic price increases[1]. The price of tungsten ammonium paratungstate (APT) more than tripled from approximately $331 per metric ton unit at the beginning of 2025 to between $1,090 and $1,150 by January 7, 2026[8].

What Changed and for Whom

Tungsten is essential for a range of critical applications, including advanced manufacturing, semiconductor technologies, and defense systems such as armor-piercing munitions and missile guidance systems[1][12][15]. The market changes have prompted responses from other nations. In response to these supply chain vulnerabilities, the U.S. Defense Department invested $450 million in The Elmet Group[15][16]. This investment aims to strengthen the domestic U.S. tungsten supply chain, bolster industrial resilience, and secure a material essential for the defense industrial base[15]. The Elmet Group is described as the only U.S.-owned, fully integrated producer of tungsten and molybdenum materials and components, supporting more than 100 Department of War programs[15]. Mike Cadenazzi, assistant secretary of War for industrial base policy, stated that this investment reflects the department's commitment to rebuilding critical industrial capacity in the United States[15].

What we could not confirm

We could not confirm if other major exchanges are planning similar tungsten futures contracts. We also could not confirm the specific regulatory bodies that must approve the CME Group's tungsten futures launch.