Three niche but critical raw materials—tungsten, sulfur, and helium—have seen price spikes exceeding those of crude oil in recent weeks, driven by the Iran conflict and preemptive Chinese export controls. For overseas buyers of semiconductors, specialty chemicals, and defense materials, these shortages signal rising costs and potential production bottlenecks that could ripple through global supply chains.
Price surge and market context
Tungsten prices broke through $3,000 per metric ton in late March, marking a more than 50% monthly gain and a tripling since end-2024. Sulfur prices in China, including cost and freight, rose about 13% from early March to $621 per tonne as of March 26, according to S&P Global Platts. Helium prices have roughly doubled since the Iran war began, per Fitch Ratings.
Supply-chain disruption drivers
The Iran conflict and the blockade of the Strait of Hormuz—a key route for energy and chemicals—have flipped some oversupplied markets into deficit. A missile strike on a major industrial hub in Qatar, which produces about one-third of global helium, has crippled supply. Christopher Ecclestone of Hallgarten & Company noted that helium supply is unlikely to recover in the short term.
China's preemptive controls and stockpiling
Beijing began tightening control over critical materials well before the Iran war, partly due to rising U.S.-China tensions. China restricted tungsten exports over a year ago and called for stricter limits on sulfuric acid exports in December 2024. Helium imports surged nearly 65% in 2024 and are expected to rise another 15.7% in 2025, according to Wind Information.
What buyers should watch
Goldman Sachs warned that despite China's perceived supply-chain resilience, some manufacturers face higher-than-expected risks of chemical raw material disruptions. A Chinese mining firm in Africa reported sulfuric acid prices there are at least 30% above pre-war levels and still climbing. Buyers of semiconductor-grade chemicals, tungsten carbide, and specialty gases should monitor spot availability and consider dual-sourcing strategies.
China sourcing context
China's early stockpiling and export controls, combined with war-driven shortages, are amplifying price volatility. For importers of tungsten, sulfur derivatives, and helium, the current environment demands closer supplier engagement and contingency planning. The disruptions also underscore the vulnerability of just-in-time supply models for niche but essential industrial inputs.
Source: Read the original report | Published: March 31, 2026