CME Group will launch tungsten futures on its COMEX exchange in early 2027, subject to regulatory reviews, creating the first futures market for the critical metal. Buyers and traders say the contract will help them manage volatile prices.
At a glance
- The contract will be cash-settled against Fastmarkets' price for ammonium paratungstate (APT).
- World tungsten output is 85,000 to 95,000 tonnes a year, a market worth over $20 billion at spot prices.
- The US, EU, Japan and India have all classed tungsten as a critical mineral.
Background
Tungsten is a very hard, heat-resistant metal used in cutting tools, electronics and semiconductors. It is traded mostly as ammonium paratungstate (APT), an intermediate chemical. Until now, tungsten has had only a spot market, so buyers and sellers had no futures contract to lock in prices ahead of time.
What happened
CME Group said on October 19 that it will launch tungsten futures, with trading expected to start by early in the first quarter of 2027. The launch depends on regulatory reviews being completed. The contract will be listed on COMEX and settled in cash against the Fastmarkets assessment for APT, on a duty-unpaid, CIF Rotterdam and Baltimore basis.
"Tungsten sits at the intersection of advanced manufacturing, semiconductor technologies and geopolitics," said Jin Hennig, CME's global head of metals.
Why buyers want it
Tungsten users have had no way to hedge against price swings. "For our manufacturing clients, tungsten is essential to production but has been difficult to budget for," said Maarten Gassmann, managing director of trader Grondmet. Quentin Lamarche, chief executive of TechMet SCM, called the contract an important new tool for managing the risks of physical trading.
Fastmarkets chief executive Raju Daswani said growing volatility and concentrated supply are increasing the need for trusted price benchmarks. CME says the contract should also support long-term Western supply chains by offering forward prices.
What it means
A futures market could make tungsten prices more transparent and let manufacturers fix costs ahead. It also reflects CME's growing metals business, which traded a record 1.2 million contracts a day in the first nine months of 2026, up 41% from a year earlier. For India, which lists tungsten as a critical mineral, a global benchmark could help importers price their purchases.
Our read
Outlook: neutral. A futures contract changes how tungsten is priced and hedged, not how much is produced. It could reduce volatility over time.
What to watch
- Regulatory approval and the first trading date for the contract.
- How much trading volume the contract attracts once it launches.
For information only, not investment advice.
Detailed analysis
Timeline
- 2026-10-19: CME Group announces tungsten futures.
Supply Drivers
Concentrated supply and growing volatility are driving demand for a trusted tungsten price benchmark.
Geopolitical Risks
CME frames the contract as support for Western supply chains as countries treat tungsten as a critical mineral.
What could lift prices
- Financial investors could add demand for tungsten exposure through futures.
- Critical-mineral status in major economies keeps strategic buying in focus.
What could weigh on prices
- Hedging tools can damp sharp price spikes.
- A futures market adds no new tungsten supply or demand by itself.
Country impact
| Country | Impact | Reason |
|---|---|---|
| United States | Medium | A US exchange becomes the home of the first tungsten futures market. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Commodity Trading | Positive | Traders gain a new contract for a previously unhedgeable metal. |
Who gains, who loses
- Tungsten users: Manufacturers can budget for a metal that has been hard to price ahead.
- CME Group: It adds a new contract to a metals business already at record volumes.
- Opaque spot-market pricing: A public benchmark makes prices more transparent.
Other ways this could play out
- If liquidity builds, the contract could become the world's tungsten benchmark.
- If trading stays thin, the contract may see little use by producers and buyers.
Price risks
- Regulatory delays could push back the launch.
- Supply shocks from concentrated producers would still move prices sharply.
United States
India