Sumitomo Electric to Raise Cemented Carbide Blank Price by 10%

Sumitomo Electric Industries (SEI) announced on Monday the firm raises selling price of cemented carbide blanks by 10% or more effective for order receipts in and after April 1st. Cemented carbide blanks are mainly manufactured into cutting tools. International market price of tungsten, main material for cemented carbide alloy, has steeply risen and Sumitomo Electric has decided the first price hike since August 2005. The firm also examines price hike of cemented carbide tools.

International market price of ammonium paratungstate (APT), which is intermediate material of tungsten, has recently surged by more than 70% from a year earlier and hit record US$ 350 per 10 kilogram content of tungsten trioxide. Ore mining and product export are regulated in China, where 80% of tungsten ore is reserved, while the demand is increasing worldwide mainly for cutting tools.

Sumitomo Electric consumes cemented carbide blanks inside the group as well as sells blanks to third-party tool makers. Sumitomo Electric has tried to reduce productive costs but material costs have surged even more largely. APT market price is unlikely to lower for a while. Sumitomo Electric decided blank price hike after five and a half years. The previous price hike covered not only blanks but also tools. This time the firm examines price hike of cutting tools such as insert chips, multi drills and solid endmills.

Other major Japanese cemented carbide tool makers, Mitsubishi Materials and Tungaloy commented each company doesn’t have concrete plan of price hike at present.