COVER STORY
Tungsten carbide's skyrocketing price – a conundrum for local manufacturers By Nelendhre Moodley China’s curb on critical mineral exports is pushing up tungsten carbide prices and placing mounting pressure on local tool manufacturers reliant on the material. Modern Mining recently spoke with MD, Kenny Padayachee and GM, Jay Pillay of Brelko Conveyor Products, about the severity of the tungsten carbide shortage and its impact on local suppliers serving the mining industry.
I n mid-May, the world’s juggernauts – the US and China’s leadership – met in Beijing for crucial talks on economic cooperation, trade, and Iran. The meeting was largely in response to trade tensions adversely impacting both countries,
and over 90% of smelting/processing capacity as of early 2026. The world’s second-largest economy has restricted exports of tungsten and tungsten carbide primarily as a strategic geopolitical tool to control the supply chain of critical minerals. The restrictions are part of a broader “dual- use” control policy
particularly the US. In early 2025, President Trump imposed steep tariffs on Chinese goods,
raising some to 147.6% by April 2026. China retaliated by increasing tariffs on US goods to 84%, targeting agricultural exports such as soybeans, pork, and beef, and restricting exports of Rare Earth Elements (REEs), critical to technology and defence industries.
(military and civilian) designed to secure domestic resources and counter US technology tariffs. This near monopoly allows Beijing to set global prices and restrict exports, causing severe supply chain
Kenny Padayachee, Managing Director.
Since January, the price of tungsten carbide has soared by over 500% and continues to adversely impact businesses reliant on the material,”
shortages and surging prices for Western defence, aerospace, and manufacturing
The impact of the restriction on critical minerals is widespread, affecting key minerals, including the export of tungsten carbide, used by equipment manufacturers to the mining industry. China dominates global tungsten carbide supply, controlling approximately 80% of mine production
sectors. South African original equipment manufacturers (OEMs), who rely on tungsten carbide, are facing significant input cost inflation, placing pressure on
Jay Pillay, General Manager.
8 MODERN MINING www.modernminingmagazine.co.za | JULY 2026
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