The price of tungsten carbide powder has repeatedly reached historic highs recently, driven by multiple factors such as supply-demand imbalances, surging military demand, and environmental production restrictions. This trend has profound implications for the hard alloy industry, which may develop in the following directions:  1. Sustained Price Increases, Cost Pressure Transferred Downstream   - Tungsten carbide powder prices exceed 408 RMB/kg, up 31.2% since the beginning of the year, forcing hard alloy manufacturers to raise prices multiple times (cumulative increase of ~30%).   - Tight supply of tungsten concentrate: Due to environmental restrictions in major production hubs (Jiangxi and Hunan), operating rates have dropped to 35%, with inventories lasting only 15 days. Some suppliers face stockouts.   - Inverted APT prices in Europe: At $460-485 per metric ton unit (~292,000-308,000 RMB/ton), exceeding domestic prices and worsening global supply shortages.    2. Demand-Side Growth: Military, Solar, and Nuclear Fusion as Key Drivers   - Military demand surges by 42%: Orders for hard alloy cutting tools, armor-piercing cores, etc., have risen sharply, with some companies’ production schedules extending into 2026.   - Tungsten wire penetration in PV reaches 35%-60%: Each GW of solar modules requires 8 tons of tungsten wire, prompting companies like LONGi and Tongwei to accelerate technological upgrades.   - Controlled nuclear fusion boosts tungsten demand: Due to tungsten’s high-temperature and radiation resistance, it is a critical material for fusion reactors. Xiamen Tungsten has already engaged in ITER projects.   3. Technological Advancements and Substitution Risks   - Breakthroughs in additive manufacturing (3D printing): Laser Powder Bed Fusion (LPBF) achieves 92% density in hard alloys but faces challenges like decarburization and cobalt evaporation.   - Japan develops tungsten-based composites: These could reduce tungsten usage by 30%, potentially threatening primary tungsten demand in the long term.   - Recycled tungsten technology advances: If adoption exceeds 40%, primary tungsten demand may drop by 25%.    4. Industry Response Strategies   - Leading companies shift toward high-end products: Xiamen Tungsten is developing ultrafine tungsten powder and PV tungsten wire, while China Tungsten High New promotes nano-grained hard alloy technology.   - Supply chain diversification: The Kamoa-Kakula tungsten mine in the DRC (expected operational by 2026) may ease supply pressures, but short-term impact remains limited.   - Policy support: China strengthens strategic control over tungsten resources, while the EU classifies tungsten as a "critical raw material," potentially reshaping global trade dynamics.   5. Future Outlook   - Short-term (1-3 months): Tungsten prices may challenge 420,000 RMB/ton, but seasonal declines in consumer electronics demand should be monitored.   - Long-term (1-3 years): Technological substitutions and new production capacity could alleviate supply constraints, though geopolitical and environmental policies remain variables.   Conclusion   The hard alloy industry faces simultaneous high costs and strong demand. Companies must respond through innovation (e.g., additive manufacturing, nanotechnology) and supply chain optimization while capitalizing on emerging opportunities in military, renewable energy, and other high-growth sectors.   contact with www.zzgloborx.com for further information