After Recent Record Highs, Tungsten Carbide Prices Begin to Stabilise: What It Means for Industry

Record Highs Driven by Global Supply Pressures

The tungsten carbide market has entered a period of extreme volatility, with prices reaching multi-year — and in some cases record — highs through 2025 and early 2026. Industry data shows tungsten carbide powder prices have risen dramatically, in some cases increasing several hundred percent over a short period, driven by a global supply squeeze and structural market changes.

One of the primary factors behind this surge is tightening supply. China, which produces roughly 80% of the world’s tungsten, has implemented export controls and reduced mining quotas, significantly limiting global availability. These restrictions, combined with environmental inspections and reduced mine output, have created persistent shortages throughout the supply chain.

Recent reports highlight that exports from China declined sharply, while domestic demand remained strong. This imbalance has disrupted global trade flows and pushed prices higher, particularly for downstream products such as tungsten carbide used in cutting tools and mining equipment.

Demand Growth Adds Further Pressure

While supply constraints are a key driver, demand has also surged across multiple industries. Tungsten carbide remains essential for manufacturing, aerospace, mining, and defence applications due to its unmatched hardness and heat resistance.

In 2026, increased defence spending and expanding renewable energy sectors, such as solar photovoltaic production, have intensified competition for limited availability. At the same time, industries continue to rely heavily on carbide tooling, which accounts for a significant portion of global tungsten consumption.

Global demand growth is expected to continue, with projections showing rising consumption driven by electric vehicles, advanced manufacturing, and high-tech applications. This sustained demand is likely to keep pressure on already constrained supply chains.

Outlook: High but Stabilising Prices for Tungsten Carbide

Despite the steep rise, there are early signs of short-term stabilization. Some market reports from May 2026 indicate slight price corrections as buyers resist further increases and inventories adjust. However, analysts widely agree that prices will remain elevated due to ongoing supply limitations and geopolitical risks.

For companies like Harlen Supplies and their customers, this new pricing environment signals a shift from short-term fluctuations to a structurally tighter market. Strategic sourcing, recycling, and long-term supplier partnerships will become increasingly important in managing costs and ensuring reliable supply.