Tungsten Supply Tightness Raises Tooling Cost Risks

Cabinet, millwork, furniture and component manufacturers could face higher tooling costs and longer lead times as global tungsten supply tightens under Chinese export controls and rising industrial demand.

Tungsten is a key input in tungsten carbide, the ultra-hard material used in saw blades, router bits, CNC tooling, inserts, drills, hoggers, planing knives, profiling tools and edgebander tooling. Reuters reported that China announced export controls in February 2025 on five critical metals, including tungsten, and that the restrictions covered eight types of tungsten products and related production methods. China produced just over 80% of global tungsten supply in 2023, according to Reuters, citing U.S. Geological Survey data.

The impact has been significant. Reuters reported in January 2026 that tungsten prices had reached record highs, driven by tightening inventories, Chinese export controls and industrial demand. Ammonium paratungstate, used to make tungsten metal, was trading at record levels in China and Rotterdam. Reuters also reported that China’s tungsten export volumes had declined by nearly 40% year over year since the controls were implemented.

For secondary wood manufacturers, the concern is not tungsten itself but the carbide tooling supply chain. Carbide tooling is central to cutting, machining, boring, profiling and edge processing in cabinet and furniture production. If supply remains constrained, shops may see higher prices for standard tooling, longer waits for specialty or custom profiles, and increased reliance on sharpening and tool maintenance to extend service life.

Other industries are already adjusting. Reuters reported in May 2026 that U.S. drill bit makers were shifting toward steel-based products as tungsten prices rose, with tungsten prices increasing to about $3,000 per metric ton from around $600 in October. The same report said some tungsten-heavy drill bit prices had risen 20% to 38% over seven months, while one manufacturer reported overall drill bit manufacturing costs up 45% to 50% over the past year.

The woodworking sector has fewer direct substitutes where carbide durability is required. Shops may need to review tooling inventories, sharpen tools on tighter schedules, consolidate specialty orders and monitor supplier lead times. Tooling suppliers may also apply surcharges if raw material volatility continues.