Why Tungsten Carbide Powder Sharply Rising Every Day?
Global prices for tungsten carbide powder, an important raw material for manufacturing cutting tools, mining equipment, and wear-resistant parts, have experienced a sharp and sustained increase over the past quarter, industry analysts report. The price surge, exceeding nearly 200% year-on-year in key markets like China, Europe, and North America, is squeezing profit margins for downstream manufacturers and raising concerns across heavy industry sectors.
Market experts attribute the steep rise to a confluence of supply-side pressures and robust demand.
Supply Chain Disruptions and Policy Tightening
The dominant factor stems from tightened supply from China, which accounts for over 80% of the world’s tungsten production. Recent stringent environmental and safety inspections have led to production halts and reduced output. Concurrently, the Chinese government has implemented stricter controls on mining quotas and export licenses for strategic resources like tungsten, further constricting the availability of key precursor materials—tungsten ore and ammonium paratungstate (APT)—from which tungsten carbide powder is derived.
Surging Industrial Demand
On the demand side, the global recovery in manufacturing, particularly in the automotive, aerospace, and machine tooling industries, has remained resilient. Increased activity in the mining and construction sectors, driven by infrastructure projects and the energy transition, has also boosted orders for tungsten carbide-based machinery and tools. This sustained demand is depleting existing inventories held by powder producers and distributors.
Escalating Energy and Production Costs
Soaring global energy prices have significantly elevated the costs of the energy-intensive processes required to produce tungsten carbide powder, including reduction, carburization, and milling. Manufacturers are passing these higher operational costs onto customers, adding another layer to the price inflation.
Industry Impact and Outlook
“The price hike is unprecedented in its speed and scale,” said Michael Thorne, a director at commodity research firm Roskill. “Fabricators of hard metals are facing a double squeeze: soaring input costs and challenges in fully passing these costs onto end-users due to competitive markets. This could lead to project delays and force a re-evaluation of sourcing strategies.”
Some manufacturers are reportedly seeking alternative grades or increasing recycling of tungsten scrap to mitigate the impact. However, the technical superiority of virgin tungsten carbide powder in many high-performance applications limits substitution in the short term.
Market participants anticipate prices will remain elevated and volatile in the coming months. The trajectory largely depends on the normalization of Chinese supply, global energy price trends, and the strength of industrial demand. Industry associations are urging for greater transparency in the supply chain and increased investment in recycling technologies to enhance long-term resilience.
