CME Targets Early 2027 Launch of Tungsten Futures to Expand Hedging
Key Facts
CME Group said it aims to launch trading in tungsten futures by early in the first quarter of 2027, providing a hedging tool for a metal used in advanced manufacturing and semiconductors. The group said the launch remains subject to completion of relevant regulatory reviews. The new contract will be listed on COMEX and subject to its rules, according to the group's official announcement. Jin Hennig, its global head of metals, said tungsten sits at the intersection of "advanced manufacturing, semiconductor technologies and geopolitics." She added that clients are seeking hedging tools and greater price transparency, needs the group linked to the planned contract launch.
CME estimates annual global tungsten production at between 85,000 and 95,000 metric tons and values its market at more than $20 billion, based on spot prices at the time of its announcement. According to the group, the metal has an active spot market but currently lacks a futures market. The new contracts will be cash-settled against Fastmarkets' ammonium paratungstate assessment. The assessment is based on delivery including cost, insurance and freight to Rotterdam and Baltimore, with duties unpaid. The expansion follows record activity in the group's metals business during the first nine months of 2026, with average daily volume of 1.2 million contracts across precious and industrial metals, up 41% year on year, according to Reuters.
Tungsten trade is subject to Chinese export controls announced on 4 February 2025, according to China's Ministry of Commerce. The list of materials covered by the controls includes ammonium paratungstate, the reference material for settlement of the planned contract. The ministry said the covered materials have "military and civilian uses." It added that end products made from these materials carry high risks of military use. At the same time, it said it would approve export licence applications that comply with relevant regulations, keeping exports conditional on meeting licensing requirements.
In the United States, a Bureau of Industry and Security rule requires sellers of tungsten waste and scrap to allocate 100% of their monthly sales to U.S. persons unless they obtain an exception or adjustment. The order took effect on 27 August 2026 and is scheduled to run until 27 August 2027, according to the U.S. Federal Register. In efforts to secure the metal for the defence stockpile, Elmet Group presented an agreement in its investor materials to supply tungsten under an indefinite-delivery, indefinite-quantity contract. The contract has an overall ceiling of $2 billion, according to the company's presentation. The agreement includes a funded commitment of $150 million as part of the supply arrangements outlined by Elmet.
Defence supply agreements also include Almonty's agreement with Tungsten Parts Wyoming, which requires the buyer to purchase at least 40 metric tons of tungsten oxide a month. Almonty said the supplies are intended for U.S. defence applications, including missiles, drones and ammunition. In a separate business development initiative, the company announced a strategic tungsten partnership with the government of Rwanda. The joint venture arrangements provide for Almonty to hold a 75% stake upon completion of the transaction, according to the company's statement. The government of Rwanda will hold the remaining 25%, under the announced partnership terms.
The deadline for public comments on the U.S. rule covering recoverable critical materials falls on 4 November 2026, according to the Federal Register. The rule includes arrangements allocating domestic sales of tungsten waste and scrap. Subsequently, U.S. defence procurement restrictions on specified tungsten materials from covered foreign countries will expand, according to Almonty. The expanded requirements take effect on 1 January 2027, according to the company's statement on its partnership with Rwanda. The expansion covers the origin of ore or feedstock used in those materials as part of U.S. defence procurement sourcing requirements.