Rising Hard Alloy Costs Create Pressure for the Drilling Tools Industry — Driven by Tungsten Price Surge Amid Escalating Middle East Tensions

March 2, 2026 — The global drilling tools industry is facing mounting cost pressure as tungsten prices maintain their strong upward momentum in the first week of March, driven by escalating geopolitical tensions in the Middle East and tight supply constraints. The surge in tungsten, a core raw material for hard alloys, has directly squeezed manufacturers’ profit margins and forced a reshaping of the industry’s pricing and product strategies.

On February 28, the United States and Israel launched large-scale military strikes against Iran, which immediately retaliated and closed the Strait of Hormuz, a critical channel for global crude oil transportation. The escalating regional tensions have triggered a sharp rise in global risk aversion, roiling financial markets. At the opening on Monday, gold, silver and crude oil prices all opened sharply higher: London Gold rose 2.14%, silver jumped 2.80%, and Brent crude soared 12.59%. Although the gains narrowed slightly later, the overall market volatility highlighted the amplifying effect of geopolitical risks on bulk commodities.

Against this backdrop, the strategic value of tungsten, a key strategic metal, has been further unleashed, underpinning the strong operation logic of tungsten prices. Meanwhile, constrained operating rates of mining enterprises have reinforced the tight supply side, creating a perfect storm for the continuous surge in tungsten prices. However, the multi-fold growth in tungsten prices over the past year has also accumulated increasing resistance in market transactions.

• 65% Wolframite Concentrate: 830,000 RMB per standard ton, up 80.4% year-to-date;

• 65% Scheelite Concentrate: 829,000 RMB per standard ton, up 80.6% year-to-date;

• Ammonium Paratungstate (APT): 1.25 million RMB per ton, up 86.6% year-to-date; European APT prices range from 1,890 to 1,998 US dollars per ton-degree (equivalent to 1.149 to 1.214 million RMB per ton), up 111.3% year-to-date;

• Tungsten Powder: 1,990 RMB per kilogram, up 84.3% year-to-date;

• Tungsten Carbide Powder: 1,930 RMB per kilogram, up 85.6% year-to-date;

• Cobalt Powder: 580 RMB per kilogram, up 11.5% year-to-date;

• 70 Tungsten Iron: 1.16 million RMB per ton, up 78.5% year-to-date; European Tungsten Iron prices range from 209 to 230 US dollars per kilogram of tungsten (equivalent to 1.005 to 1.054 million RMB per ton), up 59.6% year-to-date;

• Scrap Tungsten Bar: 1,240 RMB per kilogram, up 106.7% year-to-date;

• Scrap Tungsten Drill Bit: 1,220 RMB per kilogram, up 111.3% year-to-date.

• 
  

Tungsten carbide powder is one of the core materials used in the drilling tools industry, and the continuous rise in its price has led to a parallel increase in hard alloy production costs. This cost pressure directly affects a wide range of drilling tool products, including DTH drill bits, button bits, chisel bits, cross bits, threaded bits, and PDC products with a hard-alloy matrix — all of which are widely used in mining, energy, metallurgy, geology, coal, water conservancy and road construction.