How to Deal with the Tungsten Price Shock

There are two strategies to counter the extreme price increases for solid carbide tools: greater efficiency in tool usage and the highest precision in regrinding processes. ZOLLER offers the right solutions for both: measuring technology, inspection technology, and digital tool management.

Anyone ordering solid carbide tools right now can’t believe their eyes. While uncoated carbide rods were called up at a price of around 30 euros per kilogram in October, the price settled between 200 and 240 euros per kilogram in May 2026—an 800% price increase in seven months.

Tungsten—An Important Raw Material Sees Rising Prices

The price driver is well known: the element tungsten. Tungsten is indispensable for solid carbide tools, not least because of its melting point of 3,422 °C—no other element can withstand higher temperatures. In tools, tungsten occurs as tungsten carbide. The key indicator of international price trends is the intermediate product ammonium paratungstate (APT). In October 2025, the price was around 580 euros per ten kilograms (which corresponds to one metric ton unit, MTU). By early June 2026, it had skyrocketed to around 2,560 euros. According to experts, the price situation is unlikely to change much in the medium term.

China is the main supplier. Eighty percent of tungsten deposits and the majority of the infrastructure used to process tungsten are located there. In early 2026, the resource giant restricted tungsten exports, triggering alarm bells on the global market.

Limited Recycling Potential

There is no material that can take over the role of tungsten in solid carbide tools, nor does tool recycling offer sufficient potential to bridge the supply gap. According to figures from the European Commission from 2023, the recycling rate for tungsten at that time was 42 percent. According to a recent statement by the European Cutting Tools Association (ECTA), the availability of systems is near capacity. The cycle is at its limit.

Where a Lot of Money Is Lost: Tool Preparation

Manufacturers do not have many options for action. Increasing tool efficiency is one of the most important. This means reducing tool wear and making the best possible use of tool life. As a result, tool preparation is gaining importance as a strategic cost-saving measure. In the past, minor oversights in tool handling hardly mattered. By 2026, everything will be different. Tool life has become too valuable to waste.

Adjusting, Measuring, and Balancing Extend Tool Life

Tool life is inextricably linked to exact measurement data on tool geometry and unbalance. Tool cutting edges have been proven to withstand the stresses of the manufacturing process longer when the tool and CNC machine are matched using geometric data.

Presetting and measuring machines such as »smile« and »venturion« from ZOLLER enter comprehensive, µm-accurate data on a tool’s radial run-out, protruding length, and geometry. This enables a CNC machine to machine with significantly greater precision and less tool wear. ZOLLER’s presetting and measuring machines are designed to perform automated transmission of the data to the CNC machine in controller format. No errors, no loss of efficiency.

Integrating tool balancing into the tool preparation process adds additional time to tool life. Balancing reduces wear and tear on the cutting edges and also reduces the load on the expensive machine spindles. Empirical data from ZOLLER customers show that it is possible to double tool life. ZOLLER’s »»toolBalancers«« handle this precision task with balancing results of < 0.4 gmm.

Managing Tool Life in Digital Tool Management

In modern tool management, tool life is a key component of every tool record. Only those who know tool life can maximize its use. The limitation often lies in the tool management systems, as many solutions cannot automatically refresh remaining tool life. This results in a lack of data necessary for greater tool efficiency.

ZOLLER’s TMS Tool Management Solutions can automatically read remaining tool life data from the CNC machine and store it in the respective tool data record. This data opens the option of precisely selecting tools for a production run and using them right up to their technical limit. With continuous tool life monitoring, you can prevent tools from being discarded too early or overused beyond their tool life.

The Cost Trap of Tool Storage

When tool prices are high, it applies to keep other cost factors as low as possible. These include unproductive search times in the tool storage area. Every minute spent searching delays quick tool changes and extends costly machine downtime. It’s simple to avoid such cost traps. The combination of TMS Tool Management Solutions and ZOLLER’s tool cabinets, Smart Cabinets, keeps the tool storage area in order. You can specifically select the right tools and access them immediately without time-consuming searches. Efficient processes in the tool storage area keep costs under control.

Making the Right Decision: Should You Regrind or Retire a Tool?

If you have an exact picture of a tool’s wear and tear, you can reliably decide on the end-of-life scenario. The »»pomBasic«« series of testing devices from ZOLLER, designed for use right on the production line, simplify this decision. In just a few seconds, the devices enter over 70 tool parameters and provide clear information on which option is the right one: regrind or scrap.

Wear testing soon available with a presetting and measuring machine

Analyzing tool wear based on data is more important today than ever before. ZOLLER has recognized this need and will soon enable informative wear testing using the »smile« or »»venturion«« presetting and measuring machines. The next software update will include the »wearCheck« function. Specialized devices such as »»hobCheck«« will also benefit. After the update, you’ll be able to not only measure Gear cutting tools but also perform an inspection for wear and tear.

Grinders: Key to efficient tool lifecycles

Many tool cutting edges can be prepared after their use in production. The success of this process depends on the precision work performed by grinders. ZOLLER also offers the right products to meet the challenges of “regrinding.” With »»pomBasic««, grinding shops can perform inspection of grinding results directly at the machine in real time and have correction data transferred to the CNC machine.

One of the most comprehensive options for wear inspection is the »»edgeControl«« measuring machine. It performs a fully automatic generation of a 3D model of the cutting edge and performs a complete analysis. For grinders striving for peak performance, this is an indispensable specialized device.

Tungsten Is Not an Isolated Case

Other key players have started influencing prices in the global market for tool-grade metals. Two examples: cobalt and molybdenum. The price of cobalt has risen by about 65 percent year-over-year. Here, too, there is a single major producer—the Democratic Republic of the Congo—with a market share of just over 70 percent. The price of molybdenum has climbed by about 25 percent over the past twelve months and remains stable.

The situation in the solid carbide business therefore remains complex. The most powerful lever manufacturers have is to fully exploit all tooling potential.