Mitsubishi Materials has changed its tungsten sourcing from China to Vietnam and is pursuing alternative measures in response to the impact of China's export controls. Prices for cemented carbide tool materials rose sharply in June, according to reports.
Mitsubishi Materials began sourcing tungsten, a rare metal, from Vietnam. The company had previously relied on imports from China, but in response to the relevant export controls, it announced a policy of pursuing alternative sourcing, including recycled materials.
This unusual alternative sourcing effort aims to secure supplies for domestic manufacturing operations, and the company is prioritising the stabilisation of supplies of cemented carbide tool materials, a factor behind rising prices. It was reported that prices for the relevant materials were raised more than threefold in June, and there are indications that prolonged controls could affect price trends.
There is speculation that further price increases may be possible if China's export controls continue. Going forward, attention will focus on the stability of sourcing from Vietnam, the impact on domestic supplies and price trends.