January 2026 Tungsten Market Summary for Drill Tool Industry

In January 2026, China’s tungsten market started strongly, with mainstream tungsten product prices rising continuously at an average daily rate of about 1.5%. As of the latest update, tungsten concentrate prices have exceeded RMB 600,000/ton, ammonium paratungstate (APT) reached RMB 900,000/ton, while tungsten powder and tungsten carbide powder stood at RMB 1.48 million/ton and RMB 1.43 million/ton respectively. Tungsten carbide, a key raw material for drill tools, has seen significant price gains, which will have an impact on the cost and supply chain of the drill tool industry.

The sharp rise in tungsten prices is driven by multiple factors: tightened supply due to compliant mining regulations and hoarding activities; rigid demand from high-end fields and traditional machining sectors (including the drill tool industry); revalued strategic value amid global supply chain restructuring and fierce competition for key minerals; and bullish sentiment spillover from the strengthening of safe-haven assets such as gold and silver.

However, risks remain: recent sharp pullbacks in gold and silver prices (with intraday declines of 5.7% and 8.5% respectively before narrowing) reflect global financial market uncertainty, which may trigger volatile capital flows and exacerbate future tungsten market corrections. With the Spring Festival approaching, some manufacturers will suspend production, leading to a sluggish trading atmosphere. Market participants should focus on suppliers’ hoarding tendencies for price hikes and profit-taking behaviors, which will affect the short-term supply and price trend of tungsten products for drill tool production.

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.