Workers at a tungsten mine factory in China. [Reuters]
Workers at a tungsten mine factory in China. [Reuters]

Japan's manufacturing sector is on high alert as China tightens export controls on tungsten, a rare metal used in industrial tools and semiconductor manufacturing. With Chinese raw material supplies disrupted and prices of related products surging more than threefold, Japan's government and industry are scrambling to respond, including by expanding the recycling of scrap tools.

China accounts for roughly 80 percent of global tungsten ore output, and its tightened export restrictions on dual-use items have made supply disruptions and price increases a reality for Japanese manufacturers, according to NHK and other media reports Monday.

Chinese customs data show that exports of ammonium paratungstate — the primary tungsten raw material — to Japan plunged about 77 percent, from 688 metric tons in 2024 to 158 metric tons last year.

Exports have since fallen to virtually zero this year, as relations between China and Japan soured following remarks by Prime Minister Sanae Takaichi about a potential Taiwan contingency.

The disruption to China-sourced raw material supply chains has prompted Japanese companies to begin raising prices in earnest.

Mitsubishi Materials more than tripled the price of semi-processed tungsten products, including tungsten powder, in June, while Sumitomo Electric Industries raised prices on tungsten-containing tools by more than 1.6 times.

Smaller tool manufacturers, facing raw material supplies at just 30 percent of normal levels, have begun proposing alternative products with reduced tungsten content to their customers as a stopgap measure.

As the situation worsens, Japan's government and industry are staking their response on expanding domestic recycling of scrap tools.

The Japan Machine Tool Builders' Association has significantly strengthened a program to collect and recycle used tungsten-containing tools, working in cooperation with the Ministry of Economy, Trade and Industry.

"As raw material procurement has become more difficult, awareness among companies about conserving and recycling resources has grown higher than ever," an association official said.


mokiya@heraldcorp.com