Tight Supply - Rising Demand
With its hardness, heat resistance, and excellent conductivity, tungsten is indispensable in many vital applications: cutting materials, super-hard tools, industrial electronics, defense, and especially clean energy.
Global supply remains heavily concentrated in China, which accounts for over 80% of tungsten mining and exports. Since February 2025, China has tightened export controls, cutting export volumes by about 17% in the first half of the year. At the same time, the U.S. imposed a 25% tariff on certain Chinese tungsten products while also restricting imports from countries such as Russia, Iran, and North Korea. These developments have forced U.S., European, and Japanese corporations to seek alternative supply sources-including Vietnam.
On the market, ammonium paratungstate (APT), the key intermediate for tungsten production, has seen a sharp price increase. According to Vietcap, APT prices are currently around USD 630/MTU, nearly double Masan High-Tech Materials’ (UpCom: MSR) estimated 2024 average of USD 318/MTU, and the highest level in more than 13 years. This reflects a prolonged supply-demand imbalance while creating significant margin expansion potential for companies with integrated value chains spanning mining to deep processing.
Vietnam’s Advantage in the Global Supply Chain
Vietnam is now the world’s second-largest tungsten producer, with output of about 3,400 tons in 2024. The Nui Phao mine in Thai Nguyen, operated by Masan High-Tech Materials, is regarded as one of the largest tungsten mines outside China. With a strategic orientation toward building a high-tech materials industry deeply connected to global supply chains, Vietnam is becoming an increasingly important link in diversifying worldwide supply.
The Government’s approval of the National Mineral Master Plan to 2030 (vision 2050), along with the revised Geology and Minerals Law (effective July 2025), provides a favorable legal framework for sustainable and transparent mining, while enabling deeper integration into global value chains. This creates strong conditions for domestic companies like MSR to reinforce their competitive edge.
In H1/2025, MSR posted revenue of VND 3,007 billion, up 20% year-on-year. In Q2/2025 alone, revenue reached VND 1,614 billion, up nearly 28%, while net profit after tax came in at VND 6 billion-an improvement of more than VND 400 billion compared to the same period last year. EBITDA margin surged to 35% in Q2/2025, compared to just 12% a year earlier.
These results underscore MSR’s dual advantage: benefiting from higher selling prices of APT, bismuth, and fluorspar, while also easing financial pressure through the divestment of H.C. Starck, enabling greater focus on strategic products.
According to Vietcap, MSR is projected to contribute about 6.5% of Masan Group’s operating profit in 2025-a remarkable turnaround from previous years.
The surge in high-tech industry demand, combined with tightening global supply, is creating a “golden window” of opportunity for Masan High-Tech Materials. With the Nui Phao mine and a disciplined operating strategy, the company has the potential to become a reliable non-China supplier while helping to elevate Vietnam’s position on the global high-tech materials map.
Challenges, however, remain. Commodity prices are subject to cyclical volatility, while environmental and transparency requirements are becoming increasingly stringent. Maintaining capital discipline, optimizing costs, and managing risks will therefore be critical for MSR to capture opportunities while ensuring sustainable long-term growth.