Mitsubishi Materials has announced a significant price increase of over 40% for some of its tungsten carbide cutting tools, effective June 1, 2026.
This decision is the culmination of a dramatic surge in tungsten prices, directly linked to a series of strategic policy moves by China. The story begins in early 2025, when China, which produces over 80% of the world's tungsten, began to tighten its control over this critical resource. This wasn't a single action, but a deliberate, multi-step process.
First, in February 2025, China implemented an export licensing system for tungsten-related products. This was followed in October by the announcement of a 'state-trading' system, which restricted exports to a small list of government-approved companies. By December, the list of authorized exporters was finalized, creating a structural bottleneck for the global supply chain.
As these controls took effect, the market reacted swiftly. The price of Ammonium Paratungstate (APT), the global benchmark for tungsten, began to climb. In January 2026, it hit a record high of around $1,150 per metric ton unit (mtu) in China. By April, the spot price in Europe had skyrocketed to nearly $3,150/mtu—a staggering increase of over 170% in just a few months. This was compounded by news that some Chinese provinces were reducing their 2026 mining quotas, further signaling a supply squeeze.
Faced with this extreme cost pressure, tool manufacturers had little choice but to pass the costs on to their customers. Sumitomo Electric announced price revisions in late April, and Mitsubishi Materials followed suit shortly after. This is a classic example of how geopolitical strategy and resource nationalism can ripple through the global economy, translating a supply shock in a single raw material into higher costs for essential manufacturing components used in aerospace, automotive, and semiconductor industries.
- Glossary
- APT (Ammonium Paratungstate): An intermediate product in the process of refining tungsten ore into tungsten metal. Its price is a key global benchmark for the tungsten market.
- Tungsten Carbide: An extremely hard compound of tungsten and carbon, used to make cutting tools, abrasives, and armor-piercing rounds. It is often referred to as 'cemented carbide' or 'hardmetal'.
- Resource Nationalism: A set of policies where a country asserts control over its natural resources, often by limiting exports or favoring domestic industries, to achieve strategic or economic goals.