CME Group, the leading global derivatives marketplace, has announced plans to introduce tungsten futures in response to the increasing demand for critical minerals. The trading of these futures is expected to commence by early Q1 2027, subject to regulatory approvals.
The global tungsten market, with an annual production ranging from 85,000 to 95,000 metric tons, is valued at over $20 billion based on current spot prices. Despite its significance, tungsten lacks a futures market, although it is recognized as a critical mineral by major economies such as the U. S., the E. U., Japan, and India.
The forthcoming tungsten futures contract will be financially settled based on the Fastmarkets assessment for tungsten APT (Ammonium Paratungstate) on a duty unpaid basis CIF Rotterdam and Baltimore. Jin Hennig, Managing Director and Global Head of Metals at CME Group, highlighted the strategic importance of tungsten, noting its role in advanced manufacturing, semiconductor technologies, and geopolitics. He emphasized that the new futures will enable clients to hedge their exposure and enhance price transparency.
Quentin Lamarche, CEO of TechMet SCM, remarked that the contract would serve as a crucial tool for managing the commercial risks associated with the physical trading and logistics of tungsten. He pointed out that transparent forward pricing is essential for maintaining reliable, long-term supply chains in the West.
Maarten Gassmann, Managing Director of Grondmet, added that for manufacturing clients, tungsten is vital for production but challenging to budget without a forward market. The new contract is expected to provide greater cost certainty for these operations.
Raju Daswani, CEO of Fastmarkets, noted the growing volatility and concentrated supply in the tungsten market, which increases the need for transparent and trusted price benchmarks. He described the launch of the contract as a significant step in the market's development, linking physical-market price discovery with new opportunities to manage price risk.
CME Group's metals business has seen remarkable growth, with a record 1.2 million contracts traded daily across precious and industrial metals in the first nine months of 2026, marking a 41% increase year-on-year. The new tungsten futures contract will be listed by and subject to the rules of COMEX.
CME Group offers a wide range of global benchmark products across various asset classes, including interest rates, equity indexes, foreign exchange, cryptocurrencies, energy, agricultural products, and metals. The company provides futures and options on futures trading through the CME Globex platform and operates a leading central counterparty clearing provider, CME Clearing.
