US Tungsten Scrap Export Curbs: Why MSR Gains Strategic Value

Overview

The United States is set to restrict exports of tungsten scrap and black mass from late August 2026, a move that tightens global supply and elevates the strategic value of non-Chinese tungsten producers. Masan High-Tech Materials (UPCOM: MSR), which operates the Núi Pháo polymetallic mine and a tungsten processing platform in Thái Nguyên, is highlighted as a key beneficiary, with Q2/2026 revenue surging over fivefold year-on-year.

Key Facts

• The US Bureau of Industry and Security (BIS) will require businesses dealing in tungsten scrap and black mass to allocate 100% of monthly sales to US buyers, effective late August 2026, for one year.
• China has had tungsten export controls in place since 2025, and now the US is retaining secondary materials, further constraining international supply.
• Fastmarkets data shows average APT High prices reached approximately USD 3,245/mtu in Q2/2026, over six times higher than the same period last year, approaching USD 3,250/mtu by end-June.
• MSR reported Q2/2026 revenue of VND 8,138 billion, more than five times the year-ago figure, with record profit.
• MSR operates the Núi Pháo mine and a tungsten processing platform in Thái Nguyên, Vietnam, combining resource ownership and processing capability outside China.
• The company’s stock closed at VND 38,300 on August 6, 2026, on the UPCOM exchange.

What Happened

According to Bloomberg, the US Department of Commerce’s Bureau of Industry and Security (BIS) will impose temporary rules requiring companies trading in tungsten scrap and black mass to sell 100% of their monthly output to US buyers, unless granted an exception. The policy is expected to last one year, signaling a shift in how major economies treat strategic minerals.

This move follows China’s export controls on tungsten initiated in 2025. With both major supply sources tightening, the volume of tungsten freely available on international markets is likely to shrink. The timing coincides with rising demand from sectors such as precision cutting tools, mining, electronics, aerospace, and semiconductors, partly driven by AI-related materials needs. Supply outside China takes years to develop due to permitting and construction timelines, exacerbating the imbalance.

Market Context

MSR’s share price closed at VND 38,300 on August 6, 2026, on the UPCOM exchange. The company’s Q2/2026 results reflect the favorable pricing environment, with revenue of VND 8,138 billion, up more than fivefold year-on-year. The broader Vietnamese mining and materials sector is benefiting from higher commodity prices and supply chain diversification trends, though MSR’s unique position as a large-scale non-China tungsten producer sets it apart.

Strategic Significance

For long-term investors, MSR’s value proposition extends beyond cyclical price gains. The company’s integrated model—owning the Núi Pháo mine and processing facilities in Thái Nguyên—provides supply security that is increasingly priced into the market. As the US and China restrict exports, buyers are likely to seek stable, long-term supply contracts with non-Chinese producers. MSR’s ability to meet this demand could lead to re-rating, as the market shifts from asking “what is tungsten worth?” to “is the supply stable and accessible?”

What to Watch

• Implementation details and any exemptions under the BIS rule, which could affect the actual supply impact.
• Q3/2026 earnings release for MSR, to see if revenue and profit growth persist.
• Movements in APT prices, particularly whether they sustain above USD 3,200/mtu.
• Any new long-term supply agreements or offtake contracts MSR may announce.
• Policy responses from other major economies, such as the EU or Japan, that could further tighten or diversify supply chains.