The sharp increase in demand for tungsten and germanium, widely used in the production of defense equipment, may lead to a shortage of these metals if the conflict in the Middle East drags on, the Financial Times (FT) reported, citing experts.
„The prolonged conflict will seriously deplete missile stocks and lead to increased demand for tungsten, as the parties to the conflict will have to rearm and replenish their military arsenals“, said expert Christina Belda from the analytical company Argus Media.
According to the company, since the beginning of the US-Israeli operation against Iran, the price of tungsten has increased by almost 40%, and Germany by 10%. At the same time, the associated costs of logistics, insurance and warehousing services are increasing. Western defense companies are willing to pay a high price to accumulate sufficient quantities of critical metals.
The Payne Institute for Public Diplomacy has estimated that the United States and its allies used tens of thousands of kilograms of metals, including tungsten, copper and titanium, in the early days of the military campaign in Iran. Experts add that the production of „Tomahawk“ and „Patriot“ missiles requires particularly large amounts of metal.
„The New York Times“ (NYT) has already reported that the military actions of the US and Israel against Iran and the escalation in the Middle East have led to a rise in the prices not only of oil and gas, but also of many other commodities vital to the global economy, including sugar, fertilizers, aluminum and helium.