MDM-Podcasts-launch
Need Help? (888) 742-5060

In The News:

Tungsten Market Spikes Cutting Tool Prices


The key raw ingredient in tungsten carbide tooling is wreaking havoc with cutting tool prices for distributors, with up to 20%-plus price jumps. Worldwide markets for Ammonium Para Tungstate (APT), the key raw ingredient for carbide tooling, are extremely volatile in 2005 so far. APT prices have risen by as much as four-fold in the past ten months, from an average of below $70 per metric ton to $250-$300 per metric ton.


Distributors are seeing double-digit price increases or surcharges, some above 20 percent recently, according to one report. Carbide tool manufacturers are getting notice of raw material increases in terms of a few days; they are implementing surcharges on current contracts, as well as notifying distributors of price increases later in July. One carbide cutting tool manufacturer instituted a 6% price increase May 1, and is following with an additional 9% increase in July to catalog prices.


Causes include increased speculation, demand for tools and steel in China, lack of investment in new mine capacity, and overall strong demand. In the U.S., cutting tool manufacturers are pushing the U.S. government to release tungsten strategic reserves to stabilize the market and dampen speculation. More in the next MDM.


Cutting Tools Price Index: Jan, 1995 - May, 2005
[IMGCAP(1)]


Metals Price Index: Jan, 1995 - May, 2005
[IMGCAP(2)]

© 2019 Gale Media, Inc.

Please do not reprint MDM's content on your website without MDM's express permission as it is copyrighted material. To gain permission, email us, or call 1-888-742-5060. For information on PDF or print reprints, visit www.mdm.com/reprints. MDM welcomes inbound links from your site. Please cite Modern Distribution Management.

2018-top-distributors-listThe 2018 Top Distributors List

This free PDF includes lists of top distribution companies across 14 sectors.

You will also receive MDM Update, our daily distribution e-newsletter & other distribution-focused content.

Download the Free PDF now >>


MDM-UpdateMDM Update: Daily Newsletter 

Sign up to read the best source for news & trends in wholesale distribution, MDM Update. Delivered daily to your inbox. 

Sign-up for MDM Update >>

Partner Center