APT - the reason for the price increase of cemented carbide tools

In the recent period, manufacturers have had to buy carbide tools at higher market prices. The reason for the price increase of cemented carbide tools is that the price of ammonium paratungstate (APT), a raw material used in the manufacture of knives, has soared from about $85 per ton in October 2004 to $250 per ton in October 2005. Moreover, people have almost no hope for the price of APT to fall back to the original level for the foreseeable future. A spokesperson for a large tool company pointed out that the APT's unit price per ton "may not be less than $200, and we can no longer see the price level of the 1990s."

When the price of APT began to rise, many carbide billet producers and carbide tool suppliers initially wanted to keep their product prices stable, but by mid-summer 2005, when APT prices continued to reach $290 per ton. In the high position, they have no choice but to increase the price of the product. In order to alleviate the impact of product price hikes on some of their customers, some tool manufacturers only pass the price increase they took from upstream sellers to downstream customers.

There are various explanations for the reasons for the rise in APT prices, one of which is the growing demand for tungsten in China. China's tungsten mining accounts for about 75% - 80% of the world's tungsten use.
 

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