Tungsten Carbide: Development Paths and Anti-Cycle Strategies of the Four Giants

Tungsten carbide prices have surged by more than 600% year-on-year worldwide. Despite such industry volatility, Sandvik (Sweden), Sumitomo Electric (Japan), Xiamen Golden Egret (China), and H.C. Starck (Germany) have maintained a stable position as representative enterprises in the global tungsten carbide and powder metallurgy sectors. This paper analyzes the competitive logic and survival wisdom of these four enterprises from four perspectives: scale, development history, core positioning differences, and strategies against high tungsten prices.

Scale of Each Giant

The four enterprises show significant differences in business scale, market coverage and capacity layout, which reflect their distinct development positioning and industry status.

Sandvik

As a global leader in metal cutting and materials, Sandvik ranks first in the tungsten carbide industry. In 2024, its integrated indexable insert business alone achieved revenue of 3.89 billion US dollars with a global market share of 25.6%. Its business covers more than 150 countries and regions, with over 50,000 employees. Tungsten carbide-related products include cutting tools, mining equipment and precision components, making Sandvik the largest and most widely deployed giant among the four.

Sumitomo Electric

As a comprehensive industrial conglomerate in Japan, Sumitomo Electric’s cemented carbide division (Sumitomo Electric Hardmetal) is one of its core businesses. Although it does not disclose separate revenue for tungsten carbide, it remains in the global top tier supported by the Sumitomo Group’s global resources. It has production bases in Japan, the United States and Europe, focusing on high-end precision tungsten carbide products. The adoption rate of cermet products in Japan reaches 30%, far exceeding the average level of 10% in Europe and America. With more than 200,000 employees worldwide, its tungsten carbide products are famous for high purity and precision, covering major industrial countries across the globe.

Xiamen Golden Egret

Founded in 1989, Xiamen Golden Egret is a key subsidiary of Xiamen Tungsten, and China’s largest supplier and exporter of tungsten powder and tungsten carbide powder. It has built a full industrial chain from tungsten mining to cutting tools. In 2024, it achieved operating income of 4.944 billion yuan, with 2,177 employees, registered capital of 860 million yuan and a valuation of 4.9 billion yuan. Its production capacity is at the leading level in the industry.

H.C. Starck

H.C. Starck is a traditional giant in refractory metal powders such as tungsten, molybdenum and tantalum. Its tungsten carbide business has maintained leading assets and technologies through multiple capital restructurings. Through a joint venture Ganzhou factory with China Jiangxi Tungsten Group, it has an annual capacity of 3,500 tons of tungsten metal powder including tungsten carbide powder, reaching full capacity in 2021. Its core tungsten business was acquired by Masan Group of Vietnam in 2020 and transferred to Mitsubishi Materials of Japan at the end of 2024, forming a unique structure of Vietnamese mineral resources, German technology and Japanese capital.

Different Origins and Path Choices

The four enterprises have completely different origins and expansion paths, which profoundly shape their core business layout and technological DNA.

Global Expansion of Sandvik

Sandvik’s history dates back to 1862, starting as a steel manufacturer. It gradually entered tungsten mining and tungsten carbide materials through early resource layout. After acquiring the Mittersill tungsten mine in Austria in 2009, it established a dual-core strategy of resources and technology. Relying on self-owned mines for raw materials and continuous R&D, it pioneered graded sintering technology and AI ore sorting. It has grown into a multinational giant covering the entire tungsten carbide industrial chain, forming a closed-loop ecosystem: mining → material R&D → product manufacturing → recycling.

Innovation Path of Sumitomo Electric

Sumitomo Electric’s tungsten carbide business originated from the wire and cable business founded in 1897. In 1927, it successfully developed tungsten carbide wire drawing dies, and launched the IGETALLOY brand in 1931. After World War II, constrained by scarce tungsten resources, Sumitomo Electric took a differentiated innovation path. It developed cermet materials from the 1950s to the 1980s, mass-produced high-purity SUMIBORON CBN in 1977, and completed the full industrial chain through A.L.M.T. Corp after 2000. Its history is a typical model of resource constraints → technological innovation → industrial chain integration.

Full-Chain Integration of Xiamen Golden Egret

Supported by the resources and capital of Xiamen Tungsten, Xiamen Golden Egret follows a path of state-owned enterprise empowerment, full-chain layout and technological breakthroughs. Since its establishment in 1989, it has extended upstream to mining and downstream to cemented carbide and cutting tools, forming a complete tungsten carbide chain. In recent years, it has accelerated global expansion and launched the Silver Bird series titanium alloy milling cutters in 2025. It has grown into an important player in the global tungsten carbide field through full-chain integration and continuous R&D investment.

Capital Restructuring of H.C. Starck

Founded in Berlin in 1920 by Hermann C. Starck, the company transformed into a producer of high-purity refractory metal powders and established a leading position in tungsten carbide powder. Acquired by Bayer in 1986, it built technical barriers in ultra-fine tungsten carbide powder. After several restructurings, it has formed a model of technology retention, capital iteration and resource binding. Its core technologies such as zinc fusion recycling and ultra-fine powder production remain industry-leading, and stable product quality is its core competitiveness in the global high-end market.

Divergence in Technology, Business and Market Positioning

The four enterprises have formed distinct differences in technological routes, business structures and market focuses, building different competitive moats.

Table 1 Comparative Positioning of the Four Giants in Tungsten Carbide

Strategies Against High Tungsten Prices

Facing the sharp rise in tungsten prices, the four enterprises have adopted differentiated strategies based on their own resources and technologies, achieving stable operations.

Sandvik: Resource Closure and Technological Efficiency

Sandvik’s core strategy lies in resource autonomy, recycling and technological optimization:

• Self-owned mines ensure stable supply of virgin tungsten and avoid market price fluctuations.
• Induction heating separation recycles tungsten from scrap tools, with a target of 90% recycling rate by 2030, greatly reducing demand for virgin tungsten carbideraw materials.

Sumitomo Electric: Industrial Chain Integration

Following the tradition of innovation driven by resource scarcity, Sumitomo Electric focuses on material substitution and full-chain control:

• Cermet based on TiC/TiCN reduces reliance on tungsten carbideand hedges price increases.
• Full-chain control through A.L.M.T. Corp realizes self-sufficiency in raw materials.
• Nanocrystal technology reduces tungsten consumption by 15%–20% while improving performance.

Xiamen Golden Egret: Internal and External Cost Control

Relying on its full-chain advantage, Xiamen Golden Egret adopts a combined strategy of resource security, product upgrading and internal cost reduction:

• Self-controlled tungsten mines and expanded waste recycling ensure stable raw materials for tungsten carbide
• High-end product development enhances added value to offset rising costs.
• Global layout in Thailand and Germany diversifies procurement and capacity risks.

H.C. Starck: High-End Positioning

H.C. Starck adopts a premium pricing strategy supported by technological advantages and resource binding:

• Focusing on ultra-fine tungsten carbidepowder (0.2μm–0.5μm), it transfers cost pressure through quality premium.
• Long-term supply agreements with Masan Group lock in raw material costs and avoid market volatility.

결론

The development and coping strategies of Sandvik, Sumitomo Electric, Xiamen Golden Egret and H.C. Starck represent differentiated choices for enterprises in different niches of the tungsten carbide industry. Sandvik has built the strongest anti-cycle capability through full-chain advantages; Sumitomo Electric has broken resource constraints through material innovation; Xiamen Golden Egret has become a backbone of China’s tungsten carbide industry; H.C. Starck has maintained high-end competitiveness through technological heritage and resource binding.

Although each cemented carbide enterprise occupies a different industry position, valuable strategies to hedge against soaring tungsten prices can be learned from these giants and applied to enhance resilience in the tungsten carbide sector.