Tungsten Prices Hold Firm, Drilling Tool Industry Enters a High-Sensitivity Cost Cycle

Tungsten Prices Remain at High Levels, Cemented Carbide Costs Continue to Rise — Drilling Tool Industry Faces Heightened Sensitivity

Recently, China’s tungsten market has continued to operate in a high and stagnant pattern. As a key strategic mineral resource, tungsten remains in a tight supply balance with no substantial improvement on the supply side.
On one hand, due to the scarcity of raw materials, suppliers are generally reluctant to sell and firm in holding prices, maintaining a strong bullish sentiment. On the other hand, the complexity of the global political and economic environment and rising production costs have weakened the purchasing capacity of downstream enterprises, resulting in cautious procurement sentiment.
Under intensified negotiations between supply and demand, the market continues to show high-level volatility.

As of this publication:

Tungsten powder is priced at RMB 780/kg, up 146.8% since the beginning of the year;

Tungsten carbide powder is priced at RMB 750/kg, up 141.2% year-to-date.

As the core raw materials for cemented carbide, rising prices of tungsten powder and tungsten carbide powder have directly pushed up carbide manufacturing costs. The pressure has been transmitted to terminal products such as DTH bits, button bits, chisel bits, cross bits, and threaded drill bits.

QIDELI’s Industry Insights and Response Strategies

As a professional drilling tool manufacturer, QIDELI continuously monitors fluctuations across the tungsten supply chain. In response to the persistent rise in cemented carbide costs, the company believes:

Rising tungsten prices will significantly increase the industry’s cost sensitivity, leading downstream buyers to adopt a more cautious stocking strategy in the short term.

High-quality manufacturing enterprises will place greater emphasis on resource control and supply-chain stability, accelerating overall quality improvements in the industry.

The market may experience structural adjustments in order patterns, as customers shift from single-parameter price comparison toward a more comprehensive evaluation of cost-performance ratio and tool lifespan.

Leveraging its stable long-term supply-chain partnerships and mature manufacturing capabilities, QIDELI remains committed to providing customers with stable, high-quality, and reliable drilling tool products, even during periods of material tightness. The company will continue to maintain close communication with customers, offer timely market insights, and help them plan procurement and inventory strategies in advance.

Outlook: High Price Levels Likely to Persist as Market Sensitivity Remains High

As long as the tight supply balance of raw tungsten persists, the upward pricing logic remains intact. While the supply side continues to show strong price-support sentiment, the actual transaction range will still depend on downstream acceptance and overall market risk sentiment.

QIDELI will continue to monitor trends in tungsten raw materials and cemented carbides, and will keep partners updated with the latest industry information, providing forward-looking product solutions and procurement recommendations.