Tungsten Market Remains Strong: Rising Raw Material Costs Push Drilling Tool Prices Upward

The tungsten market has remained at a high level with a strong sense of stalemate this week. Although the overall atmosphere is cautious and dominated by wait-and-see sentiment, prices continue their upward trajectory. Tungsten powder, in particular, shows a strong rally, with prices increasing by nearly 10,000 CNY per day within the week. While many buyers hesitate in the face of soaring raw material costs, certain rigid-demand users are still forced to follow the market to secure stable supply.

Tungsten Powder and Tungsten Carbide Powder Prices Remain Firm

The tungsten powder market is currently seller-driven. Most suppliers refrain from offering active quotations or deliberately quote at higher levels to test the market, which significantly reduces the willingness of downstream companies to build inventory. Most buyers are purchasing cautiously based solely on essential demand.

As of this week:

• Tungsten powder: 760 CNY/kg

• Weekly increase: 4.8%

• Increase since the beginning of the year: 140.5%

• Tungsten carbide powder: 730 CNY/kg

• Weekly increase: 3.6%

• Increase since the beginning of the year: 134.7%

The continued surge reflects tight supply, strong strategic-metal demand, and rising upstream production costs—all contributing to sustained price strength.

Rising Costs Impacting the Drilling Tool Industry

As the key raw material for producing cemented carbide, the sharp rise in tungsten carbide prices is directly pushing up the cost of carbide rods and carbide buttons. This has a noticeable impact across the drilling tool manufacturing industry. The following products are particularly affected:

• DTH drill bits

• Button bits

• Chisel bits

• Cross bits

• Tapered & threaded drill bits

Since these products rely heavily on carbide inserts and components, manufacturers are experiencing increased production pressure, and some are preparing to adjust product pricing accordingly.

Market Sentiment Diverges, Short-Term Trend Likely to Stay Firm

Market participants currently show mixed sentiment:

• Upstream suppliers maintain a strong intention to hold prices

• Midstream processing companies are facing mounting cost pressure

• Downstream buyers are purchasing cautiously based on rigid demand

• Actual transaction volume remains limited

With supply-demand tensions unlikely to ease in the short term, the tungsten market is expected to remain strong. Companies are advised to plan procurement schedules in advance and closely monitor raw material fluctuations to mitigate cost-related risks.