Iran War Intensifies Global Shortages of Tungsten and Other Commodities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 23 hours ago
0mins
Source: CNBC
- Tungsten Price Surge: Tungsten prices exceeded $3,000 last week, marking over a 50% increase for the month, indicating strong demand in the defense sector despite significant inventory shortages due to the Iran war.
- Rising Sulfuric Acid Prices: Sulfuric acid prices in Africa have risen at least 30% since the onset of the war, while China's sulfur prices increased by approximately 13% from early March, reflecting ongoing demand pressures that could lead to severe supply shocks.
- Helium Supply Tightness: Helium prices have roughly doubled since the Iran war began, particularly after missile attacks on a key industrial center in Qatar, complicating the restoration of global helium supplies and exacerbating market tightness.
- Global Commodity Market Turmoil: The supply chain disruptions caused by the Iran war present new challenges for global markets, prompting companies to diversify their supply sources while China ramps up stockpiling plans, highlighting concerns over future supply uncertainties.
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About CAAS
China Automotive Systems Inc is a holding company principally engaged in the manufacture and sale of automotive systems and components. The Company’s main products include rack and pinion power steering, integral power steering, electronic power steering and manual steering, steering columns, steering oil pumps and steering hoses. The Company's major customers include FAW Group, Dongfeng Auto Group Co., Ltd, BYD Auto Co., Ltd, as well as Stellar Group and Ford Motor Company in North America. The Company primarily operates its businesses in the domestic and overseas markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Iran War Intensifies Global Shortages of Tungsten and Other Commodities
- Tungsten Price Surge: Tungsten prices exceeded $3,000 last week, marking over a 50% increase for the month, indicating strong demand in the defense sector despite significant inventory shortages due to the Iran war.
- Rising Sulfuric Acid Prices: Sulfuric acid prices in Africa have risen at least 30% since the onset of the war, while China's sulfur prices increased by approximately 13% from early March, reflecting ongoing demand pressures that could lead to severe supply shocks.
- Helium Supply Tightness: Helium prices have roughly doubled since the Iran war began, particularly after missile attacks on a key industrial center in Qatar, complicating the restoration of global helium supplies and exacerbating market tightness.
- Global Commodity Market Turmoil: The supply chain disruptions caused by the Iran war present new challenges for global markets, prompting companies to diversify their supply sources while China ramps up stockpiling plans, highlighting concerns over future supply uncertainties.
See More
China's Manufacturing Activity Strongly Rebounds
- Manufacturing PMI Rise: China's Manufacturing Purchasing Managers' Index (PMI) rose to 50.4 in March, exceeding economists' expectations of 50.1, indicating a strong rebound in manufacturing activity and ending two months of decline, which could enhance investor confidence.
- Economic Expansion Signal: The increase in PMI not only indicates expansion in manufacturing but also reflects a recovery from contraction levels of 49.3 and 49.0 in January and February, respectively, suggesting positive signs of economic recovery that may boost investment sentiment.
- Significant Export Growth: In the first two months of this year, China's exports surged by 21.8% year-on-year, significantly beating expectations, driven by robust demand from Southeast Asia and Europe, which offset the slump in U.S. shipments, showcasing China's competitiveness in the global market.
- Market Expectation Shift: Although the upcoming private-sector PMI is expected to drop from February's 52.1 to 51.6 in March, the overall trend of manufacturing recovery may attract more investments, further driving economic growth.
See More
G7 Foreign Ministers Urge Diplomatic Solutions for Iran War
- Frequent Meetings: The G7 has convened at the ministerial level four times since the onset of the Iran war, yet the lack of actionable outcomes highlights the fatigue and ineffectiveness of member nations in addressing the crisis.
- Energy Market Volatility: Since the first virtual meeting on March 9, energy markets have experienced significant fluctuations, with oil prices witnessing some of the largest single-day increases since the Ukraine war began in 2022, indicating market uncertainty about future developments.
- Call for Diplomatic Solutions: EU foreign policy chief Kaja Kallas stressed the need for a diplomatic resolution to the Iran war, while Germany's foreign minister pointed out that a lack of communication complicates coordinated efforts, reflecting a pressing demand for peaceful solutions among nations.
- G7 Summit Controversy: The upcoming G7 leaders' summit in June has sparked controversy due to the exclusion of South Africa, which perceives this as a result of U.S. pressure, illustrating the internal divisions and external tensions facing the G7.
See More
China's Industrial Profits Surge 15.2% Amid Economic Recovery
- Industrial Profit Recovery: According to the National Bureau of Statistics, China's industrial profits surged 15.2% year-on-year in January-February 2026, continuing the strong rebound from a 5.3% increase in December 2025, indicating significant improvement in corporate profitability amid government efforts to address industrial overcapacity and weak consumer demand.
- Annual Profit Growth: In 2025, China's industrial profits rose by 0.6% year-on-year, ending three consecutive years of decline, reflecting the effectiveness of government measures to curb aggressive price competition and boost exports, thereby enhancing corporate market confidence.
- Energy Price Adjustments: In response to disruptions in oil shipments from the Middle East, the Chinese government raised retail gasoline and diesel prices earlier this week, although the increase was moderated to about half of the normal level to cushion the impact on consumers, demonstrating a cautious approach amid global energy market volatility.
- Market Resilience: Despite soaring global oil prices, China's massive oil reserves and alternative energy sources are expected to mitigate the impact less than in other countries, indicating the resilience and adaptability of the Chinese economy in facing external shocks.
See More
GPS Disruptions Surge Amid Middle East Conflict
- Surge in GPS Disruptions: Following the U.S. and Israel's pre-emptive strikes against Iran on February 28, GPS disruptions have surged in the Middle East, with over 1,100 vessels experiencing AIS signal interference within the first 24 hours, affecting maritime, aviation, and land transportation while exposing vulnerabilities in the American-made satellite navigation system.
- Reasons for Interference: Analysts suggest that Gulf states may be jamming satellite navigation signals to protect critical infrastructure from drone and missile attacks, a tactic increasingly common in modern warfare, as evidenced by similar disruptions following Russia's invasion of Ukraine in 2022.
- Impact on Shipping: Despite the significant reduction in shipping activity due to the blockage of the Strait of Hormuz, foreign-flagged vessels from countries like China and India still have transit rights, making accurate positioning data crucial for avoiding collisions and grounding risks in the narrow strait, which measures only 21 miles (33 km) at its narrowest point.
- Emerging Technology Trends: As GPS signal jamming intensifies, industry experts highlight the vulnerabilities of satellite navigation systems, noting that modern chips can receive signals from multiple global navigation systems, with Iran potentially utilizing China's BeiDou, posing a challenge to U.S. strategic dominance in global navigation.
See More
Ikea's Expansion Plans in India Amid Global Sales Slowdown
- Market Expansion Goals: Ikea aims to open around 30 new stores in India over the next five years, building on its current six stores, which will include a mix of large and small formats as well as pick-up points for online deliveries, targeting the rapidly growing Indian furniture market.
- Local Sourcing Increase: Currently, 30% of Ikea's sales in India come from locally sourced materials, with plans to increase this to 50% by 2030, enhancing supply chain efficiency and reducing costs while supporting local economic development.
- Market Potential Analysis: According to IBEF, India's furniture and home décor market is projected to exceed $25 billion by 2024 and reach $40.8 billion by 2033, while Ikea forecasts the market will hit $48 billion by 2030, reflecting its optimistic outlook on market opportunities.
- Profitability Expectations: Despite a decline in global retail sales over the past two years, Ikea's sales in India rose by approximately 6% in the fiscal year ending August 2025, with expectations for the Indian operations to become profitable by fiscal year 2028, demonstrating strong confidence in long-term investments in this market.
See More
Iran War Intensifies Global Shortages of Tungsten and Other Commodities
- Tungsten Price Surge: Tungsten prices exceeded $3,000 last week, marking over a 50% increase for the month, indicating strong demand in the defense sector despite significant inventory shortages due to the Iran war.
- Rising Sulfuric Acid Prices: Sulfuric acid prices in Africa have risen at least 30% since the onset of the war, while China's sulfur prices increased by approximately 13% from early March, reflecting ongoing demand pressures that could lead to severe supply shocks.
- Helium Supply Tightness: Helium prices have roughly doubled since the Iran war began, particularly after missile attacks on a key industrial center in Qatar, complicating the restoration of global helium supplies and exacerbating market tightness.
- Global Commodity Market Turmoil: The supply chain disruptions caused by the Iran war present new challenges for global markets, prompting companies to diversify their supply sources while China ramps up stockpiling plans, highlighting concerns over future supply uncertainties.
See More
China's Manufacturing Activity Strongly Rebounds
- Manufacturing PMI Rise: China's Manufacturing Purchasing Managers' Index (PMI) rose to 50.4 in March, exceeding economists' expectations of 50.1, indicating a strong rebound in manufacturing activity and ending two months of decline, which could enhance investor confidence.
- Economic Expansion Signal: The increase in PMI not only indicates expansion in manufacturing but also reflects a recovery from contraction levels of 49.3 and 49.0 in January and February, respectively, suggesting positive signs of economic recovery that may boost investment sentiment.
- Significant Export Growth: In the first two months of this year, China's exports surged by 21.8% year-on-year, significantly beating expectations, driven by robust demand from Southeast Asia and Europe, which offset the slump in U.S. shipments, showcasing China's competitiveness in the global market.
- Market Expectation Shift: Although the upcoming private-sector PMI is expected to drop from February's 52.1 to 51.6 in March, the overall trend of manufacturing recovery may attract more investments, further driving economic growth.
See More
G7 Foreign Ministers Urge Diplomatic Solutions for Iran War
- Frequent Meetings: The G7 has convened at the ministerial level four times since the onset of the Iran war, yet the lack of actionable outcomes highlights the fatigue and ineffectiveness of member nations in addressing the crisis.
- Energy Market Volatility: Since the first virtual meeting on March 9, energy markets have experienced significant fluctuations, with oil prices witnessing some of the largest single-day increases since the Ukraine war began in 2022, indicating market uncertainty about future developments.
- Call for Diplomatic Solutions: EU foreign policy chief Kaja Kallas stressed the need for a diplomatic resolution to the Iran war, while Germany's foreign minister pointed out that a lack of communication complicates coordinated efforts, reflecting a pressing demand for peaceful solutions among nations.
- G7 Summit Controversy: The upcoming G7 leaders' summit in June has sparked controversy due to the exclusion of South Africa, which perceives this as a result of U.S. pressure, illustrating the internal divisions and external tensions facing the G7.
See More
China's Industrial Profits Surge 15.2% Amid Economic Recovery
- Industrial Profit Recovery: According to the National Bureau of Statistics, China's industrial profits surged 15.2% year-on-year in January-February 2026, continuing the strong rebound from a 5.3% increase in December 2025, indicating significant improvement in corporate profitability amid government efforts to address industrial overcapacity and weak consumer demand.
- Annual Profit Growth: In 2025, China's industrial profits rose by 0.6% year-on-year, ending three consecutive years of decline, reflecting the effectiveness of government measures to curb aggressive price competition and boost exports, thereby enhancing corporate market confidence.
- Energy Price Adjustments: In response to disruptions in oil shipments from the Middle East, the Chinese government raised retail gasoline and diesel prices earlier this week, although the increase was moderated to about half of the normal level to cushion the impact on consumers, demonstrating a cautious approach amid global energy market volatility.
- Market Resilience: Despite soaring global oil prices, China's massive oil reserves and alternative energy sources are expected to mitigate the impact less than in other countries, indicating the resilience and adaptability of the Chinese economy in facing external shocks.
See More
GPS Disruptions Surge Amid Middle East Conflict
- Surge in GPS Disruptions: Following the U.S. and Israel's pre-emptive strikes against Iran on February 28, GPS disruptions have surged in the Middle East, with over 1,100 vessels experiencing AIS signal interference within the first 24 hours, affecting maritime, aviation, and land transportation while exposing vulnerabilities in the American-made satellite navigation system.
- Reasons for Interference: Analysts suggest that Gulf states may be jamming satellite navigation signals to protect critical infrastructure from drone and missile attacks, a tactic increasingly common in modern warfare, as evidenced by similar disruptions following Russia's invasion of Ukraine in 2022.
- Impact on Shipping: Despite the significant reduction in shipping activity due to the blockage of the Strait of Hormuz, foreign-flagged vessels from countries like China and India still have transit rights, making accurate positioning data crucial for avoiding collisions and grounding risks in the narrow strait, which measures only 21 miles (33 km) at its narrowest point.
- Emerging Technology Trends: As GPS signal jamming intensifies, industry experts highlight the vulnerabilities of satellite navigation systems, noting that modern chips can receive signals from multiple global navigation systems, with Iran potentially utilizing China's BeiDou, posing a challenge to U.S. strategic dominance in global navigation.
See More
Ikea's Expansion Plans in India Amid Global Sales Slowdown
- Market Expansion Goals: Ikea aims to open around 30 new stores in India over the next five years, building on its current six stores, which will include a mix of large and small formats as well as pick-up points for online deliveries, targeting the rapidly growing Indian furniture market.
- Local Sourcing Increase: Currently, 30% of Ikea's sales in India come from locally sourced materials, with plans to increase this to 50% by 2030, enhancing supply chain efficiency and reducing costs while supporting local economic development.
- Market Potential Analysis: According to IBEF, India's furniture and home décor market is projected to exceed $25 billion by 2024 and reach $40.8 billion by 2033, while Ikea forecasts the market will hit $48 billion by 2030, reflecting its optimistic outlook on market opportunities.
- Profitability Expectations: Despite a decline in global retail sales over the past two years, Ikea's sales in India rose by approximately 6% in the fiscal year ending August 2025, with expectations for the Indian operations to become profitable by fiscal year 2028, demonstrating strong confidence in long-term investments in this market.
See More
