Global Tungsten Prices Surge Over 12.5% in Ten Days: Market Sentiment Heats Up as the Drilling Tools Industry Faces Restructuring

Recently, the global tungsten market has shown an unprecedented and powerful upward trend. 

Since December 1, medium-grain tungsten powder prices have surged from 800,000 CNY/ton to over 900,000 CNY/ton in just ten days—an impressive increase of 12.5%. With the price now approaching the “one-million mark,” market sentiment remains highly active.

Faced with such a sharp rise, industry opinions have become clearly divided:

Some enterprises choose to follow the momentum, speculating on further price increases;

Others opt to secure profits and temporarily pull back to observe market dynamics.

This rapid shift in sentiment has made short-term market behavior increasingly complex, leading to a strong wait-and-see atmosphere.

Supply–Demand Imbalance Intensifies: Traditional Logic Fails to Fully Explain This Rally

According to QIDELI’s observations, the current surge in tungsten prices can no longer be fully explained by traditional supply-demand dynamics. Instead, several structural factors are simultaneously driving the market upward:

1. Tight upstream resource supply

Production from major mines remains limited due to policy restrictions, environmental inspections, and safety controls;

Seasonal reductions further decrease supply elasticity;

Upstream holders show reluctance to sell, intensifying the tightness in raw materials.

2. Rapid expansion of strategic-value premium

As global attention to critical mineral security increases, tungsten’s strategic importance is being revalued, attracting more capital into the market.

3. Speculative funds accelerating market momentum

Speculative trading and expectations of a breakthrough above one million CNY/ton have amplified price volatility.

4. Year-end stocking activity pushes demand upward

Downstream manufacturers, aiming to hedge against future price uncertainty, have accelerated replenishment, further stimulating spot transactions.

Tungsten Powder and Tungsten Carbide Prices Nearly Double

As of this writing:

Tungsten powder: 900 CNY/kg (up 184.8% from the beginning of the year)

Tungsten carbide powder: 870 CNY/kg (up 179.7% from the beginning of the year)

Such sharp increases directly raise production costs for the cemented carbide industry, and the upward pressure is being rapidly transmitted to the drilling tools sector.

Drilling Tools Industry Under Pressure: Rising Costs for DTH Bits and Button Bits

As a drilling tools manufacturer, QIDELI deeply feels the impact of rising tungsten carbide costs:

Cemented carbide is the core raw material for products such as DTH bits, button bits, chisel bits, cross bits, and threaded button bits. With tungsten prices soaring:

Prices of carbide buttons, blades, and inserts used in drill bits rise significantly;

Manufacturing costs increase, compressing profit margins;

Smaller factories may reduce production or even exit the market due to cost pressure.

In this environment, stabilizing the supply chain, ensuring product quality, and controlling production costs have become essential challenges for drilling tool manufacturers.

QIDELI’s Response Strategy: Stable Quality, Strategic Stocking, and Strong Supply Chain Management

To ensure stable global order fulfillment and consistent product performance, QIDELI has implemented several key measures:

1. Long-term partnerships with upstream suppliers

QIDELI maintains long-term cooperation with major cemented-carbide producers, ensuring stable raw-material supply even during periods of market tightness.

2. Strategic stocking

By preparing essential materials in advance, QIDELI cushions the impact of price fluctuations on delivery times and production costs.

3. Enhanced production processes and material efficiency

Through continuous process improvements and optimized carbide placement and welding design, QIDELI maximizes the utilization rate of every kilogram of carbide, significantly reducing waste.

4. Transparent communication with customers

QIDELI continuously monitors tungsten-market trends and maintains transparency in quotation adjustments, helping customers plan their budgets in advance.

Outlook: Short-Term Volatility Expected, Long-Term Trend Hinges on Industry Fundamentals

In the short term, market behavior will continue to be driven by sentiment and capital speculation, and price volatility may intensify.
In the medium to long term, the trend will depend on:

The healthy development of the global industrial structure

Stability of tungsten-resource supply

Actual demand growth in the drilling tools industry

International political and economic conditions

QIDELI will continue to focus on the drilling-tools sector, offering stable supply, superior quality, and effective cost control to help customers maintain competitiveness in a rapidly changing market environment.