FOCUS ON TOOLING
RAW MATERIAL RESILIENCE
There has been a major price surge in the tool market, with carbide tools becoming considerably more expensive. The Plansee Group outlines how sheetmetal and machining manufacturers can respond to this in a sustainable way.
“ The current price increases for carbide tools mark a new dynamic driven by raw material shortages, geopolitical restrictions and growing competition for tungsten.”
Images: Ceratizit / The Plansee Group.
Since early 2025, prices for carbide tools have been rising significantly in the market— faster and more broadly than many companies have ever experienced. Based upon current market observations, price increases of around 10-15 per cent for cutting tools used in machining and wear parts used in industrial applications serve as a rough orientation.
Depending upon the product group and delivery model, additional surcharges of 60-80 per cent may also apply. The range remains wide because price adjustments vary depending upon the manufacturer, timing and product family. What is particularly striking is the frequency: due to high volatility, new announcements of price increases are arriving almost daily.
“ The current surge stems primarily from the raw materials side— and there, the bottleneck is tungsten,” explained Andreas Lackner, spokesperson for the Executive Board of Ceratizit, a company within the Plansee Group,
By
The Plansee Group
the largest tungsten supplier outside China.“ About 65 per cent of the tungsten processed worldwide is used for carbide tools,” he added.
Tungsten takes centre stage
The key driver behind the price increases is therefore the situation in the tungsten market. An important indicator here is the APT price— the price of ammonium paratungstate, a key trading form in the tungsten value chain.
“ For us, APT is something like the water level in the commodities market. When it rises sharply, that eventually— with a delay— reaches carbide tools,” explained Andreas Lackner. This APT price has increased tenfold since early 2025. This is not a normal fluctuation, but a structural shift.
The origins of the tungsten shortage and the price increase are geopolitical in nature. China produces over 80 per cent of the world’ s tungsten and exercises control over the availability of this strategic metal through exports and export restrictions. At the same time, China has been a net importer of tungsten since 2025, as mines close and domestic consumption rises. For Western supply chains, this situation means that the shortage is intensifying, which in turn means less predictability regarding availability, lead times and pricing.
Competition for the limited supply of tungsten products is also fierce, as this industrial key raw material is needed almost everywhere. In addition to the entire manufacturing industry, the semiconductor and electronics industries, medical technology and aerospace sectors require tungsten. The defence industry is also increasing its demand and building up strategic reserves in response to current conflicts.
28 | ismr. net | ISMR September 2026