Tungsten Carbide & Alloy Steel Prices Skyrocket
How global drilling tool manufacturers are navigating the 2025 raw material cost challenge.
⚙️ Alloy Steel +200~300%
In 2025, the global drilling tools industry faces a new wave of cost pressure, driven primarily by rising prices of tungsten carbide and alloy steel. As two essential raw materials for manufacturing PDC bits, drag bits, and other drilling equipment, their sustained price increases are reshaping global supply chains, pricing strategies, and procurement decisions. Chenghui Drilling Tools provides an in-depth analysis of the current market situation and shares how manufacturers are adapting to the evolving global environment.
Spot prices up from 2024 averages · Driven by concentrate supply, energy policies, and logistics.
Cr‑Mo / Ni‑Cr alloys. Iron ore prices, energy costs, and carbon emission regulations keep pushing prices up.
⚡ Global Tungsten Carbide Market
Tungsten carbide, the core material for cemented carbides and cutting applications, has seen significant price increases since late 2024. Market observations indicate that tungsten carbide powder prices have risen by approximately 200% to 300% compared to average prices in previous years.
- Global tungsten concentrate price volatility
- Stricter environmental and energy regulations
- Downstream demand from mining and oil & gas
- Rising international logistics costs
Because tungsten carbide is a key component in PDC cutters and hardfacing materials, its price volatility directly affects the manufacturing cost of drilling tools.
⚙️ Alloy Steel Prices Keep Climbing
Alloy steels such as chromium‑molybdenum and nickel‑chromium steels, widely used for bit bodies and tool joints, have also seen price increases of approximately 200% to 300% year‑on‑year.
Iron ore & energy
Rising global iron ore prices combined with higher energy costs push up steel production costs.
Carbon emission controls
Production adjustments due to environmental policies create supply tightness.
Export restrictions
Regional supply imbalances and trade measures affect availability.
For drill tool manufacturers, alloy steel accounts for a significant portion of total production costs, making price fluctuations a critical concern.
📉 Impact on the Drilling Tools Industry
Shift to high‑performance products
Manufacturers focus on PDC bits and custom solutions. Customers pay more attention to cost per meter than initial price, accelerating technology upgrades.
Supply chain optimization
Long‑term contracts, diversified sourcing, and stable procurement strategies become essential risk management tools.
International price sensitivity
Demand remains steady in Southeast Asia, the Middle East, and Europe; but buyers are more cautious due to economic uncertainty and exchange rate fluctuations.
Strategic measures in response to market changes
Stable raw material partnerships
Long‑term relationships with qualified tungsten carbide and alloy steel suppliers ensure consistent product quality and reliability.
Continuous technological innovation
Optimized cutter layout, enhanced hydraulics, improved wear resistance – helping customers reduce total drilling cost per meter.
Flexible customization services
Adjust cutter density, blade configuration, material grades according to formation conditions – achieving cost‑effectiveness even with high raw material prices.
🔭 2025 Industry Outlook
Looking ahead, tungsten carbide and alloy steel prices are expected to remain relatively high in 2025 due to continued global supply constraints and energy policy shifts.
For drilling tool manufacturers, competitiveness will increasingly depend on:
🛠️ Advanced engineering capabilities
📊 Cost control management
🌐 Global customer service responsiveness
Chenghui Drilling Tools remains committed to providing stable, high‑performance drilling solutions while actively adapting to the evolving global market landscape.