Wolfram Prices Surge as Downstream Pressure Increases: How Should Drilling Tool Manufacturers Respond?

By the end of 2025, China’s tungsten market continued its strong upward momentum, with prices climbing steadily.

In contrast, downstream industries are showing clear signs of pressure — the tighter the situation becomes, the more likely it is to break. Procurement and operational decision-making have become significantly more challenging. At present, market participants generally find it difficult to predict when prices will peak, and overall sentiment remains cautious and tense.

Raw Tungsten Prices Continue to Rise, Driving Persistent Cost Pressure

As of publication, major tungsten products in China remain at historically high levels:

Tungsten powder: RMB 815/kg, up 157.9% from the beginning of the year

Tungsten carbide powder: RMB 785/kg, up 152.4% year-to-date

Such remarkable increases surpass the levels seen in the past decade and have become the focal point of the current tungsten market cycle.

Tungsten carbide is the essential raw material for manufacturing cemented carbide. Its sharp price increase has directly pushed up production costs across a wide range of carbide-based drilling tools, notably:DTH drill bits，Button bits，Chisel bits，Cross bits，Thread drill bits，Related shank adapters and drill rods

Cemented carbide inserts represent the core cost component of many drill bits. Raw material inflation has pushed the industry into a far more sensitive and cost-intensive phase, demanding higher precision in production and inventory management.

Supply–Demand Tightness Continues: Prices Are “Easy to Rise, Hard to Fall”

Industry experts generally agree that:

In the short term, constrained supply, limited release of high-quality resources, and speculative sentiment will keep tungsten prices in an upward or high-volatility range.

Downstream buyers are becoming more cautious, showing heightened sensitivity to price fluctuations. Some customers are reducing inventory levels or postponing procurement plans.

QIDELI has observed that maintenance at certain mines, environmental inspections, and rising operational costs have further tightened supply, reinforcing the foundation for high-level tungsten prices.

Medium- to Long-Term Trends Depend on Demand and the Macro Environment

Whether tungsten prices can remain elevated over the medium and long term will depend on three key variables:

Real downstream demand and inventory digestion
Particularly the operating rates of carbide, tooling, drilling, and machining industries.

Global macro-political and economic conditions
Including manufacturing activity, construction investment, and mining development.

Structural changes within the tungsten industry
Such as shifts in supply concentration and intensifying competition for strategic resources.

Year-End Factors May Increase Short-Term Price Volatility

As the year draws to a close, several drivers may trigger additional market fluctuations:

Upstream and downstream winter restocking demand

Financial pressure and cash-out requirements

Enterprise year-end settlement cycles

Short-term procurement surges driven by “rush production” and urgent deliveries

QIDELI expects that tungsten prices may experience momentary accelerated volatility between December and January. Companies are advised to plan procurement strategies in advance.

QIDELI’s Response and Commitment

In the face of raw material volatility, QIDELI remains committed to:

Strictly controlling production costs

Stabilizing the supply chain of carbide inserts

Ensuring product quality remains unaffected by raw material fluctuations

Providing timely updates on market trends and price changes

Leveraging large-scale production to reduce unit costs and secure price advantages for customers

QIDELI will continue monitoring market developments and remain dedicated to providing high-quality, high-reliability drilling tools to global customers.