How Can the Steel Wire Drawing Industry Cope with the Cost Crisis of Hardmetals?

Abstract

Tungsten Prices Surpass 1.03 Million RMB/Ton in 2026! Faced with the soaring cost of the “teeth of industry,” how can steel wire and rod processing enterprises reduce costs and improve efficiency through high-quality wire drawing dies and nanotechnology?

If you are in the wire and rod processing or metal products industry, you have undoubtedly felt the impact of upstream raw material price fluctuations over the past year.

Since early 2025, global tungsten prices have skyrocketed. Following the 2026 Lunar New Year, prices entered a “spike” mode, changing almost daily. As of March 20, 2026, the price of black tungsten concentrate had surpassed 1.03 million yuan per ton, marking an increase of over 600% compared to early 2025.

As heavy users of downstream drawing dies and cemented carbide tools, we must clearly recognize that this is not merely a price fluctuation, but a supply-and-demand shift that is reshaping the metal processing industry chain.

1. Why does the surge in tungsten prices have such a significant impact on the “wire drawing industry”? Tungsten is known as the “teeth of industry” and is the core raw material for producing cemented carbide wire drawing dies. In the wire drawing process for steel wire, the performance of the dies directly determines the dimensional accuracy and surface quality of the final product.

“Cross-Industry Competition” on the Demand Side: One driver of this surge is the photovoltaic sector. To cut silicon wafers, the solar industry is massively replacing traditional carbon steel wire with high-strength tungsten wire. This cross-industry “scramble for resources” has directly driven up the cost benchmark for all tungsten-containing products.

Military and High-End Manufacturing Scramble for Supplies: Escalating geopolitical conflicts have led to a surge in demand for tungsten in armor-piercing rounds, missiles, and aircraft ballast. With limited quotas, the supply of cemented carbide for civilian industrial sectors faces severe challenges.

2. Supply Chain Strain: From Wire Drawing Dies to End-User Wire Products For steel wire processing enterprises, the impact of soaring tungsten prices is cascading:

Soaring Mold Costs: Cemented carbide molds typically contain up to 90% tungsten. Raw material procurement has shifted from “monthly quotations” to “cash-on-delivery,” making the procurement costs and lead times for wire drawing dies, cold heading dies, and even wear-resistant roller rings extremely unstable.

Production Scheduling Disruptions: Small and medium-sized mold manufacturers may face production cuts due to their inability to withstand financial pressure, which directly threatens the stability of consumable supplies for downstream wire manufacturers.

3. A Way Out: Seeking Efficiency Through “High-End” and “Long-Life” Solutions In an era where tungsten prices have reached “millions of yuan per ton,” the past strategy of frequently replacing inexpensive molds is no longer sustainable. Industry experts recommend the following strategies to offset costs:

Upgrade to nanotechnology dies: Since raw materials have become more expensive, every gram of tungsten must deliver greater value. While the initial investment in nano-coated drawing dies or SSCD (high-performance synthetic single-crystal diamond) dies is slightly higher, their improved wear resistance and reduced die replacement frequency result in lower average die consumption costs per ton of wire.

Optimize processes to improve yield: With tungsten prices at record highs, every inch of scrap wire represents a significant loss. Improving the lubrication efficiency of the wire drawing process and die precision to reduce wire breakage rates is the fastest way to save money indirectly.

Focus on Recycled Tungsten: Compared to virgin ore, the buyback and recycling of scrap cemented carbide dies (recycled tungsten) are becoming a hot topic in the industry. Establishing a closed-loop die recycling system is not only environmentally friendly but also a crucial step in ensuring supply chain security.

Conclusion The “wild” fluctuations in tungsten prices have exposed the fragility of the supply chain and are forcing the steel wire industry to transition toward greater precision and efficiency. In today’s market of expensive raw materials, choosing wire drawing dies made from 100% virgin materials and backed by proven technology is not only a guarantee of quality but also a core strategy for enterprises to maintain competitiveness in a volatile market.

Relink.tools consistently monitors global tungsten supply chain dynamics. Leveraging our deep industry expertise, we are committed to providing you with high-performance nano-wire drawing dies and cemented carbide solutions, helping you maintain stable production, high efficiency, and superior quality even in this “era of high prices.”

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