Views: 0 Author: Site Editor Publish Time: 2026-02-28 Origin: Site
China’s tungsten market maintained a robust upward trajectory throughout February 2026, with benchmark prices surging to historic highs.
After a brief lull in the three days leading up to the Spring Festival, core tungsten raw materials saw daily price jumps of RMB 10,000 to RMB 60,000 per ton, culminating in a 30% monthly increase and a staggering near-80% year-to-date gain.
Tungsten concentrate: Breached RMB 800,000
Ammonium Paratungstate (APT): Rose to RMB 1.2 million
Tungsten powder: Approaching RMB 2 million
Scrap tungsten rods: Stabilized at RMB 1.1 million
The relentless price rally is primarily driven by supply-side constraints and heightened market sentiment amid evolving global dynamics.
First, stringent domestic supply controls have laid the foundation for a tight market. Strengthened regulations on mining volume, compliance extraction, and trade oversight, combined with declining ore grades at existing mines and limited short-term capacity from new projects, have significantly reduced effective supply.
Second, the post-Spring Festival recovery has exacerbated near-term shortages. Mine operators have resumed production more slowly than downstream manufacturers, with historical data indicating that output is not expected to peak until March. This mismatch has further tightened spot supply in the market.
Finally, tungsten’s valuation as a strategic critical mineral has been reaffirmed amid complex international economic and geopolitical uncertainties. This has bolstered capital inflows and market confidence, providing strong emotional support for the ongoing price surge.
As the industry enters March, market participants are closely monitoring the pace of mine production recovery and the sustainability of downstream demand. The current supply-demand imbalance, coupled with tungsten’s strategic importance, suggests that the market will remain in the spotlight in the coming months.
Rising Hard Alloy Costs Create Pressure for the Drilling Tools Industry
As tungsten carbide powder prices continue climbing, the cost of producing hard alloys is rising in parallel.
Tungsten carbide is one of the core materials used in the drilling tools industry, and cost increases directly affect the following products:
DTH drill bits
Button bits
Chisel bits
Cross bits
Threaded bits
PDC products that include a hard-alloy matrix
For manufacturers, high raw material prices are compressing profit margins and forcing an adjustment in product pricing structures across the industry.
QIDELI Outlook: Industry Trends in a High-Cost Era
Based on feedback across the supply chain, there is still no clear sign of price correction in the short term.
Tight resource availability, strong market sentiment, and active capital inflows together indicate that tungsten prices will remain at elevated levels.
Against this backdrop, the drilling tools industry is expected to enter:
A cost-sensitive period
A product restructuring period
A phase of rising demand for high-quality products
QIDELI will continue to closely monitor upstream raw material price changes and provide clients with timely market insights and professional guidance.
QIDELI remains committed to quality-first principles, maintaining high standards in raw material sourcing and production process control.
Even in volatile market conditions, QIDELI will ensure stable product quality and reliable supply—a promise we uphold for our global customers as we face this new industry cycle together.
