Sprott Critical Materials ETF Set to Gain as Tungsten Rallies 500%
Tungsten prices have jumped roughly 500% in the past year as declining ore grades, tighter environmental rules and Chinese export limits have plunged global inventories into a supply deficit through 2026. This price spike could bolster valuations of critical-minerals miners held by Sprott Critical Materials ETF.
1. Tungsten Price Surge
Over the past year, tungsten prices have climbed approximately 500%, outpacing other industrial metals. This dramatic rally reflects a sustained repricing of a metal central to tooling, machining and defense applications, propelling it into sharper market focus.
2. Supply Crunch Factors
Global tungsten inventories have fallen to critically low levels as ore grades decline, environmental regulations tighten and export restrictions from the dominant Chinese producers curb shipments. Chronic underinvestment in new mines and processing capacity further compounds the shortfall.
3. Impact on Sprott Critical Materials ETF
Sprott Critical Materials ETF holds several companies with tungsten exposure, positioning it to gain from stronger pricing. Firms such as Viking Mines, with high-grade intercepts at its Linka project, and ONGold Resources, re-sampling historical core at Monument Bay, could see improved project economics.
4. Outlook and Supply Solutions
With another supply deficit forecast through 2026, market tightness is likely to persist. Potential remedies—expanded Chinese mine output, new non-Chinese projects, artisanal mining growth, enhanced recycling and demand adjustments—face regulatory, logistical or economic hurdles, suggesting prices must remain elevated to spur new capacity.