Why tungsten and cobalt are the tipping point in the hard metal market

In today’s highly strained hard metal supply chain, manufacturers of high-performance tools and components are facing a critical issue: securing a stable supply of two essential raw materials, tungsten and cobalt. These materials, which are key to ensuring durability and performance, are increasingly affected by sharp fluctuations in price and availability—trends driven largely by international geopolitical tensions.

In this article, Comtech’s specialists provide an updated overview of the tungsten and cobalt market and examine how its current dynamics are influencing Italian and European small and medium-sized enterprises.

An overview of the global tungsten and cobalt market

China currently dominates global tungsten production, accounting for more than 80% of total output. The shortage felt in Western markets can be traced primarily to Beijing’s recent tightening of export regulations and the introduction of higher duties.

The effects are immediate: rising prices across the entire supply chain (from concentrates and APT to powders), a reduction in available mining quotas, stricter controls and strategic stockpiling by producers. These factors compress margins in the production of cobalt-based alloys and encourage many companies to shift toward products less reliant on tungsten trioxide (WO₃).

Although tungsten represents a relatively small market compared to metals like copper or steel, it still plays a strategic role in key sectors such as aerospace, defense, electronics and tooling, where strength and performance are non-negotiable.

The impact on Italian and European SMEs

For small and medium-sized enterprises, managing working capital becomes increasingly challenging due to unstable supplies and upstream restrictions. The continuous rise in raw material costs erodes margins and triggers a chain reaction of price increases throughout the industry, ultimately weakening the international competitiveness of European manufacturers.

Moreover, the concentration of tungsten production within a single geographical area reinforces its geopolitical weight. Control over such a critical resource becomes a lever of global economic influence, capable of shifting the balance of the entire hard metal market.

The Expometals editorial team wishes to thank Comtech Srl, an Italian manufacturer of steel and hard metal equipment and tools for all machinery used in spring production. To learn more about its product range, we invite you to contact the company using the information provided alongside this article.