Zhuzhou Guangsheng Cemented Carbide Co., Ltd. Product Price Adjustment Information

      Since 2011, the price of tungsten has risen sharply. In order to meet the domestic consumption of tungsten metal, China has taken some measures to reduce the export of tungsten. This move has had a certain impact on the price of tungsten. A news agency involved in the metals and mining industry estimates that China controls 75% of the world's tungsten reserves and supplies 85% of its tungsten consumption.

  

     The reason for the current price increase of cemented carbide products is still that the prices of the main raw materials, tungsten and cobalt, continue to rise.

      According to reports, as the country strengthened its enforcement of environmental protection policies last year, the supply of mineral resources such as tungsten, molybdenum and rare earths tightened, and most of the mines were forced to stop production or rectification. Most of the mines are still in a state of suspension. At the same time, as China supplies about 80% of the world's tungsten raw materials, the reduction in production has led to a reversal of the market supply and demand relationship, from the seller's market to the buyer's market.

      The main raw material of cemented carbide, tungsten carbide powder, has risen from around 180 yuan/kg in 2016 to 275 yuan/kg now. The price has soared by more than 50%. As for the price of another main raw material cobalt powder of cemented carbide, That can be described as "crazy". At the same time, due to the impact of overseas prices on metal cobalt and the strong demand for ternary batteries in the domestic downstream, especially new energy vehicles, the price of cobalt has soared, which has led to a strong rise in the price of cobalt powder. The price of cobalt powder has been increased from 2016. 250 yuan / kg has been rising to the current 770 yuan / kg, the increase is actually more than 300%, it is really staggering!

     As a result, the production cost of cemented carbide products manufacturers has risen sharply, while the price of cemented carbide products has not increased much in the whole year. Cemented carbide producers generally face the embarrassing situation of increasing revenues but reducing profits or even no profits. At present, the cemented carbide production enterprises have been unable to bear the cost increase caused by the rising raw materials, and now many cemented carbide manufacturers are forced to help, and can only raise the price of the products.

    Since 2019, the price of tungsten powder and cobalt powder has remained stable. On September 20, 2019, tungsten powder was in an upward trend, rising by USD 7.2/kg in one week. Zhuzhou Guangsheng Cemented Carbide Co., Ltd. reminds customers, please advance Make a stocking plan to avoid or reduce the price increase of cemented carbide products.

---