E-mail: [email protected] Whatsapp: +8613647327093 Tel: +86-731-8403-0163
E-mail: [email protected] Whatsapp: +8613647327093 Tel: +86-731-8403-0163
I believe that many customers in the industry have felt that the price of drill bits is getting higher and higher. Why? Because the price of tungsten, an important raw alloy material, is rising. In this article, let’s see why and how the price of tungsten risen.
In recent years, as a key metal, tungsten has seen a significant increase in price and has attracted widespread attention. Tungsten is widely used in many high-end manufacturing fields such as cemented carbide, mining drilling tools, electronics, military industry, aerospace, and new energy. Its price fluctuations have an important impact on the industrial chain.
1. Tightening global supply
Tungsten is a scarce strategic resource with highly concentrated global reserves, of which China accounts for nearly 80% of global tungsten reserves and production. In the past two years, China has strengthened environmental protection supervision and resource control, and tungsten mines in many places have been restricted or closed. In addition, high-quality mines have gradually dried up, resulting in a slowdown in overall output.
At the same time, the unstable situation in Myanmar has also interfered with China's imports of tungsten concentrate. Myanmar is one of the important sources of tungsten concentrate for China. The obstruction of border transportation has caused a sharp drop in the import volume of raw materials, further exacerbating the domestic supply tension.
2. The strategic metal attribute is highlighted
As European and American countries strengthen the security management of key mineral resources, tungsten has been included in the "Strategic Key Metal List" of the European Union, the United States, Japan and other countries. Relevant countries are actively promoting localized supply or strategic reserves, and global procurement competition is becoming increasingly fierce.
3. Downstream demand continues to grow
The fields of cemented carbide, engineering drilling tools, high-speed cutting tools, etc. are highly dependent on tungsten. Especially in the context of the continued expansion of new energy vehicles, wind power, aerospace, high-end manufacturing and other industries, the application demand for tungsten has risen simultaneously.
| Time | Key nodes |
| 2023 Q4 | Myanmar border turmoil, tungsten concentrate transportation obstructed, China's import volume dropped sharply |
| 2024 Q1 | China strengthens mine environmental protection supervision, market supply tightens |
| 2024 Q2 | International APT (ammonium paratungstate) prices rise rapidly, breaking through the highest point in nearly ten years |
| 2024 Q3 | European and American markets increase strategic metal procurement plans, and global resource competition intensifies |
| 2025 H1 | Tungsten prices fluctuate at high levels, and corporate procurement costs rise significantly |
1. Cemented carbide and drilling equipment manufacturing
Tungsten is the core raw material of cemented carbide. Its price increase directly pushes up the cost of cutting tools, drill bits, mining drills, coring drill bits and horizontal directional drill bits.
2. New energy and aerospace industry
Tungsten plays an irreplaceable role in key links such as new energy motor systems and aerospace engine components. The cost spillover effect brought about by the price increase may affect the pricing and delivery plans in the fields of vehicle manufacturing, parts procurement and high-end equipment manufacturing.
3. Changes in the international supply chain
The regional concentration of tungsten resources and the increasingly complex situation are driving companies in various countries to accelerate diversified layout and strategic resource reserves.
Looking ahead, against the backdrop of global green transformation and continued expansion of high-end manufacturing, the importance of tungsten as a strategic metal will further increase. It is expected that tungsten prices will remain strong in the short term, and the medium and long term will depend on the development progress of new resources and the development of alternative technologies.
Contact Us
