Tungsten Steel Prices Surge Amid Stable Demand: Market Outlook and Future Trends

Tungsten Steel Prices Surge Amid Stable Demand: Market Outlook and Future Trends

On March 11, the domestic tungsten steel (hard alloy) market continued its strong upward trend. Due to the persistent rise in upstream tungsten raw material prices and adjustments from leading enterprises, the prices of all categories of spot tungsten steel have increased across the board. The main grades saw price hikes ranging from 1.5% to 3.5%, with tight market supply further intensifying. Transactions are primarily driven by urgent replenishment needs, and overall market sentiment is bullish.

Overview of the Current Tungsten Steel Market

According to today’s tungsten steel market report, the domestic mainstream spot prices, inclusive of taxes, are between RMB 1,010,000 to RMB 1,600,000 per ton (equivalent to RMB 1,010 to RMB 1,600 per kg), representing an increase of RMB 25-50 per kg from yesterday. The average increase across all categories is about 2.4%. High-end fine-grain tungsten steel for CNC applications has seen the most significant increase, while general-purpose mold and cutting tungsten steels have followed suit with steady price hikes. The market remains tight on spot availability.

The waste tungsten steel recycling market has also followed suit, with mainstream waste tungsten steel prices ranging between RMB 1,130,000 to RMB 1,420,000 per ton (equivalent to RMB 1,130 to RMB 1,420 per kg), with an average increase of 1.8%. The sentiment among suppliers is one of holding back in anticipation of further price rises, and the circulation of waste tungsten is steadily decreasing.

Price Hikes by Tungsten Steel Category

1. Tungsten-Cobalt Alloys (YG Series)

   • YG3 grade (3% low cobalt, precision cutting, wear-resistant instrument parts): The mainstream price is RMB 1,010,000 to RMB 1,050,000 per ton (RMB 1,010 to RMB 1,050 per kg), an increase of RMB 25,000 per ton (RMB 25 per kg), a daily rise of 2.4%.

   • YG6 grade (6% medium cobalt, cast iron rough processing, wear parts, electronic stamping molds): The mainstream price is RMB 1,060,000 to RMB 1,120,000 per ton (RMB 1,060 to RMB 1,120 per kg), with an increase of RMB 30,000 per ton (RMB 30 per kg), a daily rise of 2.8%.

   • YG8 grade (market benchmark, 8% high cobalt, mining tools, wear parts, wire drawing molds): The mainstream price is RMB 1,150,000 to RMB 1,230,000 per ton (RMB 1,150 to RMB 1,230 per kg), up by RMB 35,000 per ton (RMB 35 per kg), a daily rise of 3.0%.

2. Tungsten-Cobalt-Titanium Alloys (YT Series)

   • YT5 grade (high titanium, low cobalt, rough processing of steel parts): The mainstream price is RMB 1,080,000 to RMB 1,140,000 per ton (RMB 1,080 to RMB 1,140 per kg), up by RMB 25,000 per ton (RMB 25 per kg), a daily rise of 2.3%.

   • YT14 grade (medium titanium, medium cobalt, semi-precision cutting tools): The mainstream price is RMB 1,120,000 to RMB 1,180,000 per ton (RMB 1,120 to RMB 1,180 per kg), up by RMB 28,000 per ton (RMB 28 per kg), a daily rise of 2.5%.

   • YT15 grade (mainstream grade for steel parts, high-performance cutting tools): The mainstream price is RMB 1,160,000 to RMB 1,220,000 per ton (RMB 1,160 to RMB 1,220 per kg), an increase of RMB 30,000 per ton (RMB 30 per kg), a daily rise of 2.6%.

3. Universal Tungsten Steel (YW Series)

   • YW1 grade (universal alloy, precision cutting tools, heat-resistant steel for stainless steel): The mainstream price is RMB 1,220,000 to RMB 1,280,000 per ton (RMB 1,220 to RMB 1,280 per kg), up by RMB 35,000 per ton (RMB 35 per kg), a daily rise of 2.9%.

   • YW2 grade (medium high toughness, universal alloy, semi-precision processing): The mainstream price is RMB 1,180,000 to RMB 1,240,000 per ton (RMB 1,180 to RMB 1,240 per kg), an increase of RMB 30,000 per ton (RMB 30 per kg), a daily rise of 2.6%.

4. High-End CNC Tungsten Steel

   • Ultra-fine grain 0.2μm-0.5μm grades (e.g., YL10.2): The mainstream price is RMB 1,450,000 to RMB 1,600,000 per ton (RMB 1,450 to RMB 1,600 per kg), up by RMB 50,000 per ton (RMB 50 per kg), a daily rise of 3.3%.

   • High-end mold tungsten steel (e.g., CD650, KD20): The mainstream price is RMB 1,380,000 to RMB 1,520,000 per ton (RMB 1,380 to RMB 1,520 per kg), up by RMB 45,000 per ton (RMB 45 per kg), a daily rise of 3.1%.

Tungsten Waste Recycling Market Surge

The waste tungsten steel recycling market also saw significant price hikes. Prices for domestic waste tungsten blades/rods are now RMB 1,130,000 to RMB 1,160,000 per ton (RMB 1,130 to RMB 1,160 per kg), up by RMB 10,000 per ton (RMB 10 per kg), a daily rise of 0.9%. Imported waste tungsten blades and CNC black tungsten prices have increased by RMB 20,000 per ton (RMB 20 per kg), a rise of 1.6%.

Key Factors Driving Price Increases

1. Upstream Raw Material Prices Surge
   The price of tungsten concentrate has significantly risen, with mainstream prices for 65% black tungsten concentrate reaching RMB 1,028,000 per ton. The rising costs of tungsten raw materials are pushing up the production costs of tungsten steel products.

2. Price Adjustments by Leading Enterprises
   Major tungsten steel enterprises, such as Zhuzhou Diamond and Xinxin Co., have issued price adjustment notices, increasing their product prices. Their actions serve as a strong market signal, prompting other manufacturers to follow suit.

3. Tight Supply and Low Inventory
   The supply of tungsten concentrate has been constrained due to strict government controls on mining quotas and intensified crackdowns on illegal mining. The reduced availability of raw materials is pushing up prices for tungsten steel products.

4. Stable Demand from End Users
   Demand for tungsten steel remains strong, especially from industries like machine processing, mold manufacturing, mining, and aerospace. The shift towards replacing imports with domestically produced tungsten steel, especially in high-end applications, continues to drive demand.

Market Outlook and Future Predictions

Looking ahead, the tungsten steel market is expected to maintain its strong upward trend in the short term. With supply constraints and stable demand from downstream sectors, prices are likely to continue rising. However, market participants should remain cautious as prices have already surged significantly. The speculative atmosphere in the market may lead to minor corrections, so it is recommended that downstream manufacturers manage their inventory wisely and avoid hoarding.

In conclusion, while the tungsten steel market shows positive momentum, it is essential for industry participants to make informed purchasing decisions based on their actual needs and avoid following market speculation too closely.