BUSINESS

Middle East Tensions Ignite Rally in Strategic Metals

Published: Mar. 5, 2026 4:15 a.m. GMT+8

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Retail investors check A-share closing prices in Hai’an, Jiangsu province, on March 4, 2026. Photo: IC

Rising tensions in the Middle East are pushing up prices of key minerals vital to military production, sending shares of companies that produce these so-called “war metals” sharply higher.

Tungsten, antimony and tantalum have drawn renewed attention because of their extensive use in defense manufacturing. On Wednesday, shares of major tungsten producers rallied. Shenzhen-listed Zhangyuan Tungsten Co. Ltd. closed up 8%, while China Tungsten and Hightech Materials Co. Ltd. gained 2.4%. Shanghai-listed Xiamen Tungsten Co. Ltd. rose 4.2%, and Guangdong Xianglu Tungsten Co. Ltd. climbed 5.4%.

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Rising Middle East tensions have driven up prices of defense-critical metals like tungsten, antimony, and tantalum, with major producers’ shares increasing up to 8% in one day.
Tungsten prices rose 11.6% in a week, reaching up to 1.26 million yuan/ton, nearly fivefold higher since 2025, and a supply gap forecast could reach 19,200 tons by 2028.
Broader demand for strategic metals is fueled by military restocking and stockpiling, boosting prices for related metals such as niobium and chromium.

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Who’s Who

Zhangyuan Tungsten Co. Ltd.: Zhangyuan Tungsten Co. Ltd. is a major tungsten producer based in China. Its shares, listed on the Shenzhen exchange, notably closed up 8% due to rising tensions in the Middle East, which have driven up prices for "war metals" like tungsten.

China Tungsten and Hightech Materials Co. Ltd.: China Tungsten and Hightech Materials Co. Ltd. saw its shares gain 2.4% recently. This increase is attributed to rising tensions in the Middle East, which led to a surge in demand and prices for tungsten, a critical "war metal" used extensively in defense manufacturing. The company is a major tungsten producer.

Xiamen Tungsten Co. Ltd.: Xiamen Tungsten Co. Ltd. is a Chinese company listed in Shanghai, producing tungsten. Their shares rose by 4.2% on Wednesday as tensions in the Middle East drove up prices for "war metals" like tungsten. The company benefits from the critical role tungsten plays in military applications due to its high melting point, density, and hardness.

Guangdong Xianglu Tungsten Co. Ltd.: Guangdong Xianglu Tungsten Co. Ltd. is a Chinese tungsten producer. Its shares rose by 5.4% during a period when rising Middle East tensions drove up prices of "war metals" like tungsten. The company is listed in Shanghai.

China International Capital Corp.: China International Capital Corp. (CICC) projects a growing global supply-demand deficit for tungsten from 2026 to 2028. They anticipate the shortfall to reach 18,500, 18,800, and 19,200 tons in those respective years. This is estimated to be about 17% of the global primary tungsten demand, which is expected to support sustained price increases.

Ximei Resources Holding Ltd.: Ximei Resources Holding Ltd. is a niobium producer. Its shares jumped over 34% in Hong Kong on March 2, following rising tensions in the Middle East pushing up prices of minerals vital for military production.

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What Happened When

2025：: Supply of tungsten tightened amid crackdowns on illegal mining in major producing provinces such as Jiangxi and rising domestic demand.

2025：: Tungsten prices surged nearly fivefold.

As of early 2026：: Tungsten prices have climbed another 89% since the start of the year.

By February 26, 2026：: Price of ammonium paratungstate (APT) was around 1.12 million yuan ($162,130) per ton.

February 28, 2026：: Tensions among the U.S., Israel, and Iran escalated.

March 1, 2026：: APT price rose to 1.22 million yuan per ton according to Argus.

March 2, 2026：: Factory-gate prices increased to between 1.25 million yuan and 1.26 million yuan per ton; shares of Ximei Resources Holding Ltd. in Hong Kong jumped more than 34%.

March 4, 2026：: Shares of major tungsten producers rallied: Zhangyuan Tungsten up 8%, China Tungsten and Hightech Materials up 2.4%, Xiamen Tungsten up 4.2%, Guangdong Xianglu Tungsten up 5.4%.

AI generated, for reference only