CME Group is preparing to launch a tungsten futures contract by the first quarter of 2027, responding to soaring demand from global remilitarisation and rising prices of the critical mineral. The financially settled contract will allow buyers to hedge exposure without taking physical delivery. Tungsten, valued for its hardness and high melting point, is used in armour-piercing bullets, munitions, drill bits and machinery.
Prices have surged this year after China, which dominates production, restricted exports. The market remains opaque, with most deals done bilaterally or through traders. Similar dynamics affect other critical minerals like rare earth elements and gallium.
The contract will be linked to prices at the Rotterdam and Baltimore trading hubs for ammonium paratungstate, reported by Fastmarkets. Quentin Lamarche of Tech Met SCM called it an important new tool for managing commercial risks. Maarten Gassmann of Grondmet said it would help users plan with greater cost certainty.
Governments in the US and UK have taken equity stakes in tungsten groups to build non-Chinese supply chains. Trading activity across CME's metals products rose 41% in the first nine months of 2026, with 1.2mn contracts traded daily.
Source: Financial Times Companies · Summarized by HeadlinesBriefing