Rising Tungsten price: What opportunities await Masan’s mining business?

Amid global geopolitical and trade fluctuations, strategic minerals such as tungsten are increasingly proving vital to high-tech industries.

APT, the key raw material for tungsten production, currently trades around $630 per metric ton unit (MTU), nearly double Masan High-Tech Materials (UPCoM: MSR) estimated 2024 average of $318/MTU, reaching the highest level in over 13 years.

According to VietCap Securities, this development stems from China’s export controls implemented in February 2025, which led to a roughly 17% decline in exports by July 2025. At the same time, the U.S. imposed a 25% tariff on certain Chinese tungsten products. It banned the Department of Defense from purchasing tungsten from countries including China, Russia, Iran, and North Korea. This has compelled companies in the U.S., EU, and Japan to seek alternative suppliers, including those in Vietnam. Currently, Vietnam ranks second globally in tungsten production with approximately 3,400 tons in 2024, accounting for nearly 22% of U.S. imports.

Anticipating global trends, Masan High-Tech Materials, a subsidiary of Masan Group (HOSE: MSN), is asserting its position by operating the Nui Phao mine in Thai Nguyen, one of the world’s largest tungsten mines outside China.

Over the past year, MSR announced its “Back to Basics” strategy, focusing on operational optimization, capital discipline, and sustainable growth to ensure high profit margins at its mines and refining facilities. MSR is pursuing the supply of products that meet the world’s strictest technical and environmental standards, aiming to increase product value and promote tungsten recycling.

Improved Business Performance

In the first half of 2025, MSR recorded revenue of VND 3,007 billion, representing a 20% year-over-year increase. In Q2 2025, revenue reached VND 1,614 billion, nearly 28% higher than that of the same period last year; post-tax profit was VND 6 billion, an improvement of over VND 400 billion compared to the previous year. EBITDA margin rose sharply to 35% in Q2 2025, compared with just 12% in the same quarter last year.

These figures clearly reflect MSR’s dual advantage: benefiting from rising prices of APT, bismuth, and fluorspar, while also being supported by the divestment of H.C. Starck, which reduced financial pressure and allowed refocusing on strategic products.

According to VietCap, MSR is expected to contribute approximately 6.5% of Masan Group’s operating profit in 2025. This marks a notable shift compared with the past, when the mining segment was considered “non-core” and recorded losses.

“Golden Opportunity” for the Mining Sector

MSR also stands to gain from domestic policy support. In 2023, the government approved the National Mineral Master Plan, extending through 2030, with a vision to 2050, in which sustainable mining and deep processing over raw mineral exports are prioritized. At the same time, the amended Law on Geology and Minerals, effective July 1, 2025, aims to increase transparency, improve management efficiency, and encourage capable enterprises to participate more deeply in the global supply chain.ss

Against this backdrop, with the advantage of the Nui Phao mine and the “Back to Basics” strategy, MSR is considered the Vietnamese company best positioned to leverage opportunities and advance in the global supply chain.

Furthermore, in the era of green technology, demand for strategic minerals is expected to continue expanding, creating multiple opportunities for MSR. The company can assert its position in the global supply chain as a reliable alternative supplier outside China, while pursuing sustainable growth through high-value products, operational efficiency, and expanded recycling activities. MSR not only contributes positively to Masan Group’s consolidated profit but also enhances Vietnam’s position on the global high-tech mineral map.

Nonetheless, MSR must maintain capital discipline, optimize costs, and manage market risks, as commodity prices remain volatile and environmental requirements become increasingly stringent. These factors are crucial for the company to both seize opportunities and ensure sustainable growth.

The surge in demand across high-tech industries, combined with tightening global supply, is creating a “golden opportunity” for Masan High-Tech Materials. With the advantage of the Nui Phao mine and a structured operational strategy, MSR is entering a new phase of growth.

Soucre: Vietnam Investment Review