Secure tungsten supply in a structurally changing market
Carbide shapes the modern world
From aerospace and mobility to energy, electronics, and medical technology—modern industry runs on precision. And at the core of that precision is tungsten carbide.
Its extreme hardness, heat resistance, and durability make it indispensable for high‑performance tooling. Without it, many of today’s advanced manufacturing processes simply would not be possible.
But the same material that enables industrial progress is also becoming increasingly strategically sensitive.
A market that has fundamentally changed
In recent years, the tungsten market has entered a new phase—one defined not by normal commodity cycles, but by structural pressure.
A key upstream indicator is ammonium paratungstate (APT), an intermediate used to produce tungsten powders and ultimately tungsten carbide. As APT prices move, the cost structure of the entire carbide supply chain follows. In 2026, APT saw a sharp and rapid increase, signaling a fundamental reset of replacement costs across the industry.
What's Driving the Shift?
This shift is not the result of a single event. It reflects several forces converging at once:
Highly concentrated global supply
with the majority of tungsten production located in China
Tighter controls and export restrictions
reducing material availability outside key producing regions
Rising demand
from strategic industries such as aerospace, defense, and advanced manufacturing
Risk-driven purchasing behavior
as companies secure material in anticipation of shortages
Together, these dynamics have transformed tungsten from a relatively stable input into a strategic raw material with increased volatility and long-term uncertainty.
The challenge is not just price volatility—it is the underlying structure of the supply chain itself.
From efficiency to resilience
For decades, global supply chains were optimized for efficiency and cost. That model assumed that raw materials would remain available, affordable, and predictable over time.
Around 80% of global supply is concentrated in China, exposing manufacturers worldwide to geopolitical shifts, trade dynamics, and resource constraints.
In this environment, short-term reactions—such as stockpiling or reactive sourcing—are not sufficient.
What is required is a structural approach to resilience.
Resilient by Design
At CERATIZIT, supply chain security is not a response to current market conditions. It is the result of a long-term strategy.
As part of the Plansee Group, CERATIZIT has built a tungsten supply chain designed to withstand volatility by combining integration, circularity, and independence into a single, resilient system.
Integration: Control of the crucial steps
CERATIZIT operates a fully integrated value chain—from tungsten powder to the finished tool.
This integration ensures control over all key production stages and reduces exposure to short-term market fluctuations and external dependencies.
Rather than relying on fragmented supply networks, CERATIZIT’s model creates stability through end-to-end ownership and coordination.
Circularity: Keeping tungsten in the loop
At the core of CERATIZIT’s resilience is a recycling-driven supply chain. With a recycling rate of over 90% (FY 2024/25), CERATIZIT operates one of the most advanced circular material systems in the industry.
This system is built on three key elements:
Global scrap collection and sorting, led by Stadler Raw Materials, Europe’s largest tungsten scrap collector
Advanced recycling technologies, including thermomechanical (zinc) and chemical processes at Global Tungsten & Powders (GTP) in the USA and Finland
Closed-loop processing, where recycled material is chemically identical to primary raw material, ensuring no compromise on quality
By keeping tungsten in circulation, CERATIZIT reduces dependence on primary mining while maintaining high-purity material flows across the value chain.
Independence: Strategic sourcing beyond concentration risks
In addition to recycling, CERATIZIT secures access to primary raw materials through long-term partnerships and strategic investments.
This includes the Plansee Group’s position as the largest single shareholder in Almonty Industries, operator of the Sangdong mine in South Korea—one of the most significant tungsten resources outside China.
All concentrates from such sources are processed within the Group at GTP facilities, strengthening control, traceability, and independence from external processing dependencies.
Responsibility and transparency as a foundation
Resilience is not only about availability—it is also about trust.
CERATIZIT ensures responsible sourcing through:
These standards provide customers with a supply chain that is not only stable, but also transparent, traceable, and aligned with global expectations.
What this means for customers
In a market defined by uncertainty, the value of a resilient supply chain becomes tangible. All enabled by a system that is not reacting to change—but designed to withstand it.
Independence from short-term market shocks
Planning security in volatile conditions
Consistent quality and availability across global operations
A new reality—and a different approach
Tungsten will remain essential to modern manufacturing.
What has changed is how it must be sourced, processed, and secured.
The industry is moving from a model built on cost optimization to one defined by resilience, responsibility, and long-term thinking.
CERATIZIT’s answer is clear:
1. Why is supply chain security so important today?
Global supply chains are increasingly affected by geopolitical risks, resource nationalism, trade restrictions, and market volatility. For critical raw materials such as tungsten, supply chain security is essential to ensure stable access, maintain manufacturing continuity, and reduce sourcing risks.
2. How does CERATIZIT ensure a stable tungsten supply?
Integration is one of the three pillars of CERATIZIT's supply chain strategy. As part of the Plansee Group, CERATIZIT operates a fully integrated value chain spanning raw material sourcing, powder production, and finished tooling solutions. This creates greater control over critical supply chain processes and helps reduce exposure to market disruptions.
3. Is CERATIZIT independent from China for raw material sourcing?
For the Western world, CERATIZIT's raw material supply is independent of China. As part of the Plansee Group, this is supported through a combination of long-term offtake agreements, strategic investments, and recycling capabilities.
4. Which industries rely on tungsten?
Industries including aerospace, electronics, medical technology, energy, automotive, and advanced manufacturing rely on tungsten because of its exceptional hardness, heat resistance, and wear performance.
5. How does recycling contribute to supply security?
Circularity is one of the pillars of CERATIZIT's supply chain security strategy. With a tungsten recycling rate of over 90% (FY 2024/25), CERATIZIT significantly reduces dependency on primary raw materials while lowering environmental impact. Scrap is collected globally and processed through advanced recycling technologies within the Group.
6. How do you ensure responsible and conflict‑free sourcing?
CERATIZIT supports responsible mineral sourcing through RMI-conformant smelters, a strict Supplier Code of Conduct, and comprehensive supplier management processes designed to promote transparency, traceability, and responsible sourcing practices.
7. What does it mean to have a fully integrated value chain?
It means critical stages of the value chain, including raw material sourcing, powder production, and tool manufacturing, are managed within the Plansee Group. This increases transparency, quality control, and resilience in the supply chain.
8. How does CERATIZIT ensure flexibility and reliability across global markets?
CERATIZIT leverages the Plansee Group's globally connected sourcing, recycling, production, and processing network to strengthen supply chain resilience, adapt to market changes, and support reliable customer supply.
9. How does CERATIZIT support customers during global uncertainty?
By securing access to critical raw materials, maintaining transparent sourcing practices, and investing in a resilient supply chain architecture, CERATIZIT helps customers reduce supply risk and maintain operational continuity during periods of geopolitical or market uncertainty.
10. Which customers benefit most from your secure supply chain?
Customers in aerospace, electronics, medical technology, energy, automotive, and advanced manufacturing particularly benefit from CERATIZIT's integrated value chain, high recycling rate, diversified sourcing strategy, and responsible supply chain management.