Navigating Current Market Challenges: A Note on Tungsten Carbide Raw Material Pricing

To Our Valued Customers and Partners,

At zhuzhou Gingte Cemented Carbide company , we are committed to providing you with the highest quality cemented carbide products, known for their exceptional hardness, wear resistance, and performance. This commitment has always been built on a foundation of transparency and trust.

Today, we are writing to openly address a significant challenge currently impacting our global industry: the unprecedented and sustained increase in the cost of tungsten carbide (WC) powder, the primary raw material essential for manufacturing our products.

Understanding the Situation

Over the past several months, the price of tungsten carbide powder has experienced a sharp and dramatic rise. This surge is driven by a combination of global macroeconomic factors:

1. Soaring Raw Material Costs: The price of tungsten ore, from which WC powder is derived, has increased drastically due to supply constraints and heightened global demand.

2. Energy and Production Expenses: The manufacturing process for high-quality WC powder is energy-intensive. Skyrocketing global energy prices have directly escalated production costs.

3. Geopolitical and Supply Chain Pressures: Ongoing international tensions and continued bottlenecks in global logistics have disrupted supply chains, creating scarcity and further inflating costs.

4. Strong Market Demand: Robust demand from key sectors such as aerospace, automotive, mining, and industrial machinery continues to outpace the available supply of refined powder.

Our Commitment to You

While these market forces are beyond our direct control, how we manage them is our responsibility. Our priority remains uncompromising quality. We will not alter the material composition, grain size, or sourcing standards of our tungsten carbide powder to cut costs. The integrity and performance of your tools and components are paramount.

We have been actively working to absorb a significant portion of these cost increases through operational efficiencies and strategic inventory planning. However, the magnitude and persistence of this price surge make it unsustainable to bear indefinitely.

Moving Forward Together

To ensure we can continue to supply you with the premium, reliable products you depend on, a price adjustment on our product lines will become necessary in the coming weeks. Our sales team will communicate directly with you regarding specific timelines and details.

We deeply value our partnership with you. We see you not just as a customer, but as a key partner in progress. We believe that through open communication, we can navigate this period successfully.

Thank you for your understanding, loyalty, and continued trust in our company Zhuzhou Gingte . We are dedicated to supporting your operations and achieving mutual success long into the future.

For any immediate questions, please do not hesitate to contact your dedicated sales representative.

Sincerely,

The Zhuzhou Gingte Cemented Carbide Team