Argus Analysis: European Tungsten End-users Hit By Soaring Costs

London, August 24th (Argus) - The price of European tungsten has begun to decline, but market participants warn that the cost increase over the past few months has weakened the competitiveness of producers outside China.
After China imposed restrictions on the export of key tungsten products, the price of tungsten rose significantly this year. Since China implemented export control in 2025, the Argus unadulterated Rotterdam assessment of ammonium metatungstate (an intermediate product used in the production of tungsten powder and carbide materials) has increased by nearly 500% year-on-year.
However, in recent months, the resistance to the soaring prices in Europe has intensified. Tungsten product manufacturers and end consumers believe that they cannot afford the higher costs. Therefore, the assessment on August 11th dropped by 160 US dollars/tonne to 2780-3100 US dollars/tonne, marking the first decline since April. On August 13th, the price of European tungsten concentrate also dropped from 2400-2800 US dollars/tonne to 2400-2600 US dollars/tonne at the Rotterdam warehouse. However, market participants stated that the decline was too small to significantly improve the trading environment. An attendee from Europe said: "A small decline is true, but we cannot compete with Chinese producers at these levels."
The price difference has become increasingly evident in the tool industry, which is one of the largest consumers of carbon tungsten. This metal is used in cutting tools, drill bits, or milling cutters. European manufacturers stated that Chinese competitors continue to benefit from the decline in tungsten costs, enabling them to offer finished tools at prices that are beyond the reach of competitors outside China. The gap between domestic prices in China and European prices remains large. On August 20th, the APT price in China was almost one-third of the European price, and the Chinese market has been in a downward trend since April.
"As Chinese producers enter the market with tungsten tools priced 50% lower, we are losing more and more orders," a tungsten powder supplier from Europe said. The competitive pressure has raised concerns that if the market situation does not improve, more business will shift to China. "If this market does not start to undergo meaningful and sustainable changes, the entire industry is at risk of being monopolized by China," an American tungsten product consumer told Argus.
This disruption has also spread to related raw material markets. Market participants reported that due to the increase in tungsten prices, some tool manufacturers in Japan have reduced production, resulting in a decrease in the purchase volume of cobalt powder, which is used as a binder in hard alloys. Hard alloys are composed of carbon tungsten and cobalt. Carbon tungsten is valued for its hardness, and cobalt binds the material together. In hard alloys, tungsten typically accounts for about 70% of the material, and cobalt makes up the remaining 30%. Although according to industry estimates, hard alloys account for only about 9% of global cobalt demand, market participants are concerned that a decline in the production of carbides may drag down cobalt consumption. Market sources told Argus that, like tungsten, the greater risk is that the manufacturing of carbides and related cobalt demand shift to China, as it is difficult for producers outside China to compete on costs.