Tungsten: gaining exposure to a strategic military metalAmerican Tungsten Corp.CSE:TUNGSwissquoteGeopolitical events in the Middle East have had a strong impact on the commodities market. In particular, the energy sector has experienced a sharp rise in oil and natural gas prices, which may seem quite logical given the disruptions affecting energy supply around the Persian Gulf. However, in the metals segment, the expected movements have not materialized, as precious metals were not the ones supported, since they were already heavily overbought and had been in strong demand for several months due to geopolitical factors. Within the metals segment of the commodities market, the clear leader since the beginning of the military operations on February 28 has been tungsten. This metal, which is not traded on the stock market like gold or silver, has seen its price rise by more than 400%. Tungsten is indeed a strategic military metal because it is used in the manufacturing of many of the most decisive types of ammunition within the global military apparatus. Given the intensity of current military operations as well as those expected in the future, major powers need to rebuild their war reserves, and this will inevitably require strong demand for tungsten. However, tungsten is a rare strategic metal. China is the world’s leading producer and alone accounts for about 80% of global supply. The United States will make every effort to expand its production, but supply constraints will likely persist over the coming years, putting upward pressure on prices. It is not possible to gain direct exposure to tungsten on the stock market as one can with gold or silver. However, the main tungsten producers are listed companies, and the table below shows the top three Chinese companies in tungsten and the top three Western tungsten companies. These companies currently represent the main stock market vehicles for gaining indirect exposure to tungsten price movements. Chinese companies largely dominate the value chain, whether in ore extraction, refining, or industrial processing. This dominance reflects China’s strategic lead in critical metals, a field in which Beijing has invested massively for several decades in order to secure its supply and strengthen its industrial and military influence. On the Western side, several companies are gradually trying to develop alternative production capacities. Although their volumes remain modest compared with Chinese production, these companies are attracting increasing interest from governments and investors, particularly in the context of policies aimed at securing supply chains. Critical metals, including tungsten, are now at the heart of the industrial and defense strategies of major powers. In this context, Western producers could benefit both from a favorable price environment and from supportive public policies. For investors, these companies therefore represent an indirect but potentially effective way to position themselves in a strategic metal whose demand could remain structurally high in the coming years. The chart below shows, for example, the daily Japanese candlesticks of American Tungsten Corp, with an upward trend above the 200-day moving average. DISCLAIMER: This content is intended for individuals who are familiar with financial markets and instruments and is for information purposes only. The presented idea (including market commentary, market data and observations) is not a work product of any research department of Swissquote or its affiliates. This material is intended to highlight market action and does not constitute investment, legal or tax advice. 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