Masan High-Tech Materials to grab opportunities from rising tungsten prices

Amid geopolitical and global trade fluctuations, strategic minerals such as tungsten are increasingly asserting their vital role for high-tech industries.

The price of APT, the main raw material for tungsten production, is currently fluctuating around $630/MTU, which is nearly double the estimated average price of MSR in 2024 ($318/MTU) and the highest in more than 13 years.

According to securities firm VietCap, this stems from the fact that China has imposed export controls since February, causing exports to fall by about 17 per cent as of July. At the same time, the US imposed a 25 per cent tariff on some Chinese tungsten products and banned the Department of Defence from purchasing tungsten from countries such as China, Russia, Iran, and North Korea.

This forced US, EU, and Japanese businesses to locate alternative sources of supply from other countries, including Vietnam. Vietnam currently ranks second in the world in tungsten production with about 3,400 tonnes in 2024, accounting for nearly 22 per cent of US imports.

To seize the opportunities, MSR announced the "Back to Basics” strategy in the past year, focusing on operational optimisation, cost efficiency, and sustainable development to ensure strong margins at the mine and processing plant. MSR is pursuing the delivery of products in line with the world’s most stringent technical and environmental standards, prompting the company to increase the product value and promote tungsten recycling.

Improved business performance

In the first half of 2025, MSR generated revenue of nearly VND3 trillion ($114.67 million), up 20 per cent on-year. In the second quarter, the company achieved a revenue of VND1.6 trillion ($61.2 million), up nearly 28 per cent on-year. Its after-tax profit reached VND6 billion ($229,000), an improvement of VND400 billion ($15.3 million) from the same period last year. Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased strongly to 35 per cent in the second quarter of 2025, compared with 12 per cent from a year ago.

The figures reflect the dual benefits of MSR, as the company not only benefits from the rising selling prices of APT, bismuth, and fluorspar, but also receives support from the HC Starck deconsolidation. Thus, the company can ease financial pressure while channelling its resources into strategic products.

According to VietCap, MSR is expected to contribute around 6.5 per cent of Masan Group’s operating profit in 2025. This is a notable transformation compared to previous years, when mining was considered “non-core” and recorded losses.

Golden period for mining industry

Not only benefitting from global trends, MSR stands to enjoy opportunities from local policies. In 2023, the government approved the master plan on exploration, exploitation, processing, and use of mineral resources until 2030, with a vision to 2050, with a priority on sustainable extraction and deep processing over raw exports.

In parallel, the revised Law on Geology and Mineral Resources, which took effect on July 1, aims to enhance transparency, improve the efficiency of state management, and encourage capable enterprises to participate more deeply in global supply chains.

Against this backdrop, with the Nui Phao mine and its “Back to Basics” strategy, MSR is poised to seize the best opportunities to climb the global supply chain.

Moreover, there is a rising demand for strategic minerals in the era of green technologies, creating more opportunities for MSR. The company could affirm its role in the global supply chain as a reliable alternative supplier outside China while pursuing sustainable development through higher value-added products, operational efficiency, and recycling expansion. More importantly, MSR not only makes a positive contribution to Masan Group’s consolidated earnings but also helps elevate Vietnam’s position on the global high-tech minerals map.

That said, MSR must maintain capital efficiency, optimise costs, and manage market risks amid commodity price volatility and increasingly stringent environmental requirements. This is the key factor for the company to both seize opportunities and ensure sustainable development.

The booming demand from high-tech industries, coupled with tighter global supply, is creating a “golden opportunity” for MSR. With the Nui Phao mine and a comprehensive operational strategy, MSR is entering a new growth phase.

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