Tungsten producer Masan repositions on market shift

Masan High-Tech Materials (Masan), a subsidiary of Masan Group, operates the Nui Phao mine in Vietnam’s Thai Nguyen province, one of the largest tungsten mines outside China. With tungsten prices at historical highs and supply tight in the wake of Chinese export restrictions, Masan aims to reposition itself to seize opportunities in a shifting market. Argus spoke to Fedor Mironenko, director of sales and strategic tungsten sourcing, about the company’s evolving strategy, market challenges and Vietnam’s role in the context of global trade tensions.

Tungsten prices are at record highs, and availability is tightening, especially for ammonium paratungstate, the intermediate material needed in most tungsten products. How do you interpret current market dynamics?

The market is undergoing a fundamental shift — something I haven’t witnessed in 20 years in the industry. It’s not just about price changes, but also material scarcity. You can’t buy from China now, and people are even talking about a deficit within China. There are several factors — geopolitical tensions, export restrictions, domestic demand — it’s not just that China doesn’t want to export. Customers are becoming increasingly anxious, and Western governments are seeking to build independent supply chains. This shift is truly fundamental.

One of our concerns is the threat of substitution. If customers cannot get units, they have to look for alternatives, which is a problem.

In this shift, where does Masan stand?

We hold a strong market position. We are completely China-independent — we don’t source raw materials from China, nor do we sell to China. Vietnam’s neutral stance in the trade war allows us to support our customers with confidence. That is a great opportunity.

However, like everyone else, we are short on raw materials. We are currently in a transition phase, moving from one part of our body to another, which has resulted in lower production this year. From next year, we expect production to ramp up. In two to three years, we anticipate returning to previous production levels.

Last year, Masan implemented its ‘Back to Basics’ strategy. What does this entail?

‘Back to basics’ means focusing on Masan High Tech’s core business, managing our Vietnamese assets effectively. Last year, MHT completed the divestment of its stake in HC Starck to Mitsubishi Materials as part of this renewed focus.

This move allows us to concentrate resources on our main operations, and as a result we are in a much stronger operational position than at the start of the year.

We are working on several projects, including developing by-products. For example, fluorspar is easy to market due to existing offtake agreements. We are also considering projects with metallurgical-grade fluorspar and exploring extraction of residual gold and copper from sulphide concentrate — aiming to maximise the value of everything we produce.

We are also engaging with potential clients to develop bismuth. Prices have surged recently due to export controls, but we are evaluating whether there is real market demand.

Our goal is to establish ourselves as an industrial hub for various metals. Beyond tungsten, we are exploring opportunities to process various metals. It doesn’t have to be the metals we mine — we can partner with firms that mine various metals, and they bring them to us for processing.

What makes Vietnam attractive for foreign investment in mining and processing?

Vietnam offers a mix of factors that make it increasingly relevant in discussions around strategic sourcing and manufacturing. It’s close to China, allowing for regional integration, while it is also open to Western markets. The country benefits from relatively low operating costs and a young, growing population, with an average age of around 34. Government policies are supportive of foreign investment, and recent developments — such as major manufacturing facilities for companies like Samsung — highlight Vietnam’s growing role in regional supply chains, particularly in provinces like Thai Nguyen and port cities such as Haiphong.

How do you see demand for tungsten going forward?

Demand is mostly stable, with no major increase or decline anticipated. The market is influenced more by supply shortages than by changing demand.

I am not particularly optimistic about the European industry overall due to issues related to high energy and production costs, taxation and environmental regulations.

The automotive sector is significant, but with the shift to electric vehicles, demand for combustion engines — and, by extension, for machine and cutting tools — will fall. This means the share of traditional cars is declining.

Even so, we have started selling tungsten oxide for use in cathode materials — a small but fast-growing market. New applications, particularly in nuclear and solar energy, are promising — especially in China.

Over the next few years, defence is likely to be the main driver of demand, as we understand it. But the key question is whether growth in new applications will be enough to offset the decline in traditional uses, particularly in automotive. The increase in new markets may simply balance out the decrease from traditional applications.

Source: Argus Media