Since the beginning of 2026, the global supply chain has once again faced severe challenges. With the escalation of geopolitical conflicts in the Middle East, particularly the surge in the risk of the Strait of Hormuz being blocked due to the US-Iran conflict, not only have crude oil prices fluctuated, but a supercycle in the price of the strategic metal tungsten has also been triggered. This storm has quietly spread to the downstream industrial diamond and superhard material tool markets.
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Tungsten: The “backbone” of modern industry and military defense
Tungsten, due to its extremely high melting point and hardness, is known as the “metal of war.” Under the current circumstances, the global defense industry’s demand for tungsten (used in armor-piercing projectiles and missile components) is experiencing explosive growth, far surpassing its priority in civilian industries. Furthermore, the increased strategic stockpiling by major global suppliers has led to a doubling of the spot price of tungsten powder in March 2026 compared to the same period last year.
Why are industrial diamond tools affected by the rise in tungsten prices?
Many customers are curious: “Isn’t diamond made of carbon? Why is it linked to the price of tungsten?” The Acer team explains that the manufacturing of industrial diamond products is not solely based on diamonds; the key lies in their “bonding agent” and “matrix”:
- Tungsten Carbide Body: The supporting structure of high-performance PCD cutting tools, drills, and wear-resistant parts is mainly composed of tungsten carbide. When the proportion of raw material costs rises significantly, the price of end products will inevitably fluctuate accordingly.
- Metal Bonding: In the manufacture of metal bonded grinding wheels or saw blades, tungsten powder is often used as a key additive to improve the tool’s wear resistance and structural strength.
- Precision wire saw technology: The “tungsten diamond wire” widely used in the semiconductor and optoelectronic industries is made of high-purity tungsten itself, and is therefore most directly affected.
| Cost items | 2026/01 (Before the conflict) | 2026/03 (Current Status) | Trend Observation |
|---|---|---|---|
| Tungsten/tungsten carbide matrix | 30% | 55% | 🔺 翻倍成長，成為主要成本驅動力 |
| Industrial diamond/micro powder (Diamond Grit) | 25% | 18% | 🟢 供應穩定，佔比因其他材料漲價而稀釋 |
| Binder/Rare metals (Co, Ni) | 15% | 20% | 🔺 受地緣政治物流影響小幅上漲 |
| Energy, processing and logistics | 30% | 7% (structural proportion) | 🔺 油價飆升帶動整體名目成本增加 |
Hongway Industrial’s Response and Commitment
In response to this resource shortage, HonWay Materials, leveraging its long-standing expertise in the rare materials supply chain, is taking the following measures to mitigate the impact on its customers:
- Diversified supply chain management: Acer does not rely on a single production location. Through its global procurement network and recycled material refining technology, it ensures a stable supply of raw materials.
- Early warning and inventory preparation mechanism: We continuously monitor London Metal Exchange (LME) and strategic metal prices to provide long-term contract clients with the most timely inventory warnings and price adjustment explanations.
Conclusion
In the turbulent year of 2026, industrial diamond tools are no longer just consumables, but also “strategic materials” to ensure production stability. Honway will continue to leverage its expertise in superhard materials and grinding and polishing to work with partners to navigate this wave of international material price adjustments and ensure the competitiveness of the precision machining industry remains intact.
[About HonWay Materials] HonWay Materials is committed to providing high-quality diamond grinding and polishing tools, as well as rare earth and rare materials. We focus on technical services to assist industries such as semiconductors, aerospace, and precision optics in overcoming processing challenges.
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Data Reference：Almonty Industries
