Mitsubishi Materials Raises Tungsten Carbide Prices Amid China Supply Shortage

Japan’s Mitsubishi Materials Corporation will more than triple the price of its tungsten carbide products, citing severe supply constraints driven by China’s export restrictions on the critical industrial metal. The decision, announced on Tuesday, underscores the growing global strain on tungsten supplies as manufacturers scramble to secure raw materials for high-performance cutting tools and wear-resistant components.

Price Hike Reflects Supply Squeeze

Mitsubishi Materials, a major supplier of tungsten-based materials, confirmed the price increase without specifying exact figures. However, the company indicated that the adjustment would apply to select tungsten carbide products, with some grades seeing increases exceeding 200% compared to previous levels. The move follows a prolonged period of rising costs for tungsten, a key input in the production of hardened tools used in aerospace, automotive, and precision engineering industries.

The price surge is directly linked to China’s tightened export controls on tungsten, which have drastically reduced global availability. China, the world’s dominant producer of tungsten, accounting for over 80% of global supply, implemented stricter export permits in early 2025. These measures, coupled with reduced mining quotas, have created a supply bottleneck, leaving international buyers with limited alternatives.

China’s Export Restrictions Disrupt Global Market

China’s export restrictions have had a cascading effect on tungsten markets worldwide. According to industry data, Chinese tungsten exports dropped nearly 40% year-on-year in 2025, exacerbating an already tight supply situation. The country’s mining quotas for tungsten were also reduced by 6.5% in 2025, further constraining output. These policies have driven prices for ammonium paratungstate (APT), a precursor to tungsten metal, to record highs, with Chinese domestic prices reaching $1,125 to $1,150 per metric ton unit (mtu) in early 2026.

The impact of China’s restrictions has been felt across multiple industries. Tungsten carbide, prized for its hardness and resistance to wear, is essential in manufacturing cutting tools, drill bits, and wear parts for machinery. The aerospace, defense, and semiconductor sectors have seen particularly strong demand, as tungsten hexafluoride—a compound derived from tungsten—is critical in semiconductor fabrication. The electric vehicle (EV) industry has also contributed to rising demand, as tungsten carbide is used in components for battery production and high-performance motors.

Manufacturers Face Rising Costs and Supply Uncertainty

Mitsubishi Materials’ price increase is the latest in a series of adjustments by global manufacturers grappling with the tungsten supply crisis. The company’s decision reflects broader industry challenges, including soaring raw material costs and a shortage of recycled tungsten scrap. Tungsten powder and cobalt, both essential in carbide production, have seen sharp price increases, forcing manufacturers to pass on costs to customers.

In the fourth quarter of 2025, tungsten carbide prices in China surged by 56.25% compared to the previous quarter, according to market assessments. Buyers in North America and Europe have reported supply shortages, leading to fierce competition for limited Chinese exports. Emerging producers in Vietnam and South Korea have attempted to fill the gap, but their output remains insufficient to offset the decline in Chinese supply.

The supply constraints have also led to inventory hoarding, as manufacturers and traders stockpile tungsten to hedge against future price increases. Geopolitical uncertainties, including trade tensions and export policies, have further contributed to market volatility. Analysts warn that without a resolution to China’s export restrictions, tungsten prices could continue to climb, putting additional pressure on industries reliant on the metal.

Industry Response and Future Outlook

Mitsubishi Materials’ price adjustment is expected to ripple through the supply chain, affecting downstream manufacturers and end-users. The company has not indicated whether the increase will apply uniformly across all product lines or be limited to specific grades. Industry observers suggest that other tungsten carbide producers may follow suit, potentially leading to further price escalations in the coming months.

For now, manufacturers are exploring alternatives to mitigate the impact of rising tungsten costs. Some are investing in research to develop substitute materials or improve recycling processes to recover tungsten from scrap. However, these efforts are unlikely to provide immediate relief, given the complexity of tungsten extraction and the time required to scale up alternative production methods.

The tungsten supply crisis highlights the vulnerabilities in global supply chains for critical industrial metals. As demand continues to grow in high-tech and green energy sectors, the reliance on a single dominant supplier—China—poses significant risks. Industry stakeholders are calling for greater diversification of supply sources and increased investment in domestic production to reduce dependence on Chinese exports.

For Mitsubishi Materials, the price increase is a necessary step to offset rising input costs and maintain profitability. The company’s decision reflects the broader challenges facing the tungsten carbide industry, where supply constraints and geopolitical factors are reshaping market dynamics. As the situation evolves, manufacturers and end-users alike will need to adapt to a new reality of higher costs and supply uncertainty.