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POLICY BRIEF
The U.S. tungsten scrap export ban.
Effective August 27, 2026, American sellers of tungsten waste and scrap must sell 100 percent of it to domestic buyers. Here is what the federal allocation order says, why Washington issued it, and what it means if you hold carbide scrap.
WHAT HAPPENED
The rule, in plain English
On July 30, 2026, the White House issued a Presidential Determination under Section 101 of the Defense Production Act finding that recoverable critical minerals and materials — including tungsten — are scarce and essential to national defense. On August 6, the Commerce Department's Bureau of Industry and Security (BIS) published a temporary final rule implementing a Directive Allocation Order: effective August 27, 2026 through August 27, 2027, U.S. persons engaged in the sale of tungsten waste and scrap (Schedule B code 8101.97.00.00) must allocate 100 percent of monthly sales to U.S. persons. In practice, that closes off exports of tungsten scrap without prior BIS approval — the material must physically remain in the United States, and Customs and Border Protection may detain shipments pending review. The same order also covers black mass, the shredded lithium-ion battery scrap used in battery recycling. Companies can request adjustments or exceptions from BIS on a rolling basis, including for material sent abroad for processing and returned to the U.S., and BIS says it intends to respond within about 14 days — but until an exception is granted, the domestic requirement stands.
WHY WASHINGTON ACTED
Record prices, no domestic mines
The order did not come out of nowhere. Tungsten prices rose roughly 622 percent between January 2025 and April 2026 — the sharpest increase of any of the 27 minerals tracked in the International Energy Agency's Global Critical Minerals Outlook 2026 — driven by strong demand and Chinese export controls. The United States currently has no active tungsten mines, which is why the scrap stream is being fenced in. The scale of what was leaving the country is striking: U.S. exports of tungsten waste and scrap totaled 2,183 metric tons in just the first half of 2026, nearly matching the 2,202 tons exported in all of 2025, with Japan, Germany, and South Korea the largest recipients. Separately, from January 1, 2027, U.S. defense procurement rules will restrict tungsten sourced from China, Russia, Iran, and North Korea in key military applications. The message from Washington is consistent: tungsten is now treated as a strategic material, not just a commodity.
WHAT IT MEANS FOR SELLERS
If you hold carbide scrap, read this
You can no longer export tungsten scrap without a license. If you are a U.S. seller of carbide inserts, end mills, drills, buttons, or any other tungsten-bearing scrap, your buyers must now be domestic unless you obtain an adjustment or exception from BIS in advance. Market reaction has been sharp: several exporters warned of near-term domestic oversupply, since material that used to ship to Asia must now find U.S. outlets — and domestic refining capacity is limited. One trader called the order "a death sentence for exporters." For sellers, the practical takeaways are straightforward: sell to established domestic buyers, keep your material sorted and documented (tight markets reward verifiable lots), and expect more competition among domestic buyers for good material. Ironcrest buys carbide scrap domestically and quotes every lot against current tungsten market conditions — send photos for today's price.
Policy context only — not legal advice. The rule is published in the Federal Register; consult counsel for compliance questions.
FREQUENTLY ASKED QUESTIONS
Export ban questions, answered.
Can I still export carbide scrap from the U.S.?
Only with prior approval. From August 27, 2026 through August 27, 2027, sellers of tungsten waste and scrap must allocate 100 percent of monthly sales to U.S. buyers unless BIS grants an adjustment, exception, or interim license. Customs may detain shipments sent without one.
Does the order apply to small sellers and machine shops?
The rule applies to U.S. persons engaged in the sale of covered tungsten waste and scrap (Schedule B 8101.97.00.00). If you sell carbide scrap, the domestic allocation requirement covers your sales regardless of lot size.
How long does the export ban last?
The Directive Allocation Order runs for one year — August 27, 2026 through August 27, 2027 — unless BIS revokes it earlier. It was issued as a temporary final rule, so its terms could also be modified.
Where should I sell my carbide scrap now?
To domestic buyers. Ironcrest Industrial Surplus buys carbide inserts, end mills, drills, and other tungsten carbide scrap from machine shops, manufacturers, and contractors across the Midwest and nationally by mail. Send photos for today's price — call 312-880-8174 or email [email protected].
Send photos, estimated weight, material type, and location for today’s price. Email [email protected] or call 312-880-8174.
SELL DOMESTIC
Your carbide scrap stays valuable — sell it at home.
The export ban keeps American tungsten in America. Ironcrest is a domestic buyer quoting against live tungsten markets, and we pay for sorted, documented carbide lots from shops and sellers nationwide.
HOW SELLING WORKS
Three steps to an offer.
Material review
We review what the material is, its condition and quantity, and whether it fits a direct purchase.
Receive an offer
For qualifying material, we discuss a direct purchase offer and the next steps.