Carbide cutting tools have long been hailed as the “teeth of industry.” Since the discovery of carbide materials, they have played a pivotal role in global industrial development; indeed, every sector—from aerospace, mold manufacturing, and medical technology to precision machinery—relies indispensably on carbide cutting tools.
However, the carbide cutting tool industry currently faces a monumental, global-scale challenge: tungsten—the primary raw material used to manufacture carbide. This material is currently undergoing an unprecedented, frenzied surge in price. In a mere 11 months, its cost has skyrocketed more than sixfold, climbing from 386 yuan per kilogram in April 2025 to its current level of 2,380 yuan per kilogram.
This surge in tungsten prices has directly impacted the production costs of carbide cutting tools. Consequently, tool prices have been forced through numerous adjustments within a very short timeframe—to the point where manufacturers are, at times, adjusting their pricing on a daily basis.
The rise in tungsten prices is primarily driven by the following factors:
1. The Chinese government has reduced mining quotas for tungsten ore (China is the world’s largest producer of tungsten).
2. The production capacity of tungsten processing plants is insufficient to meet market demand; after decades of extraction, high-grade wolframite concentrates can no longer consistently guarantee high-quality tungsten yields, and current mining operations predominantly yield scheelite concentrates.
3. The consumption of tungsten in the defense and new energy sectors is surging.
4. Tungsten has been designated an “international-level strategic metal,” and its export and sale are subject to strict state regulation.
As a downstream player in the industry, we face the reality that price increases are now a foregone conclusion. To navigate this situation, I believe we must take the following steps:
1. Ensure the continued provision of high-quality and stable products to our customers.
2. Further enhance the quality and scope of our services.
3. Strive to bolster our company’s technological competitiveness.
4. Enter the market, confront the market, and understand the market.
