Primary Price Drivers and Data Insights 

Price trajectories for these three critical materials are shaped by distinct core factors, supported by key market data. 

• Gold: Supported by Monetary Policy and Safe-Haven Demand The rally in gold prices is primarily fueled by shifting macroeconomic conditions. The Federal Reserve's interest rate cuts in 2025 exerted downward pressure on the US dollar, enhancing gold's appeal. Concurrently, persistent geopolitical uncertainties bolstered safe-haven demand. Notably, sustained central bank purchasing has provided a solid price floor, with global official reserves increasing by approximately 634 tonnes in the first three quarters alone. Consequently, the dollar-denominated gold price remained strong, trading above 2,400perouncebylate2025,equatingtoroughly131.4 per gram (at an exchange rate of 7.05). 
• Silver: Industrial Demand and Physical Market Squeeze Silver outperformed in 2025, characterized by higher volatility due to a powerful convergence of its attributes. Industrially, robust demand from photovoltaics (PV) and electric vehicles (EVs) formed a solid base. Simultaneously, the physical market experienced a significant squeeze. Reports indicate global tracked silver inventories fell to levels covering only about 1.2 months of consumption, sustaining a market deficit for consecutive years. This physical tightness, combined with investment inflows, propelled prices sharply higher, with futures contracts breaching 15,000 yuan/kg (approx. $2,127.7/kg) by year-end. 
• Tungsten Carbide: Structural Rise from Resource Constraints The price increase for tungsten carbide is rooted in structural supply constraints for tungsten raw material. Tighter control of mining quotas in a major producing country intensified raw material scarcity in 2025. This supply pressure converged with robust demand from both traditional manufacturing/mining and emerging sectors like PV tungsten wire. This fundamental mismatch directly fueled price surges for key intermediates, with tungsten powder and carbide powder prices rising approximately 90% and 100% year-on-year, respectively, driving up costs for finished hard alloy products. 

Multifaceted Impact on the Metal Processing Industry 

The synchronous increase in key material costs is reshaping the metal processing landscape across several dimensions. 

1. Mounting Integrated Cost Pressure Companies face simultaneous cost inflation for tooling (carbide) and specialty materials (e.g., silver for paste, gold for components), severely compressing profit margins. This broad-based cost pressure hits small and medium-sized enterprises (SMEs) particularly hard, likely accelerating industry consolidation. 
2. Innovation and Efficiency Become Imperative To cope, companies are shifting from passive cost-bearing to active strategic management. This drives multiple initiatives: optimizing processes to reduce material waste; establishing closed-loop recycling systems for precious metals and carbide scrap; and accelerating R&D into alternative materials like advanced ceramics or low-silver-content pastes. The high-cost environment is forcing a transition towards leaner and smarter manufacturing. 
3. Supply Security Overrides Cost Prioritization In an environment of supply instability and high prices, procurement strategy has fundamentally shifted from seeking the "lowest cost" to ensuring "secure supply." Companies are responding by building strategic inventories, negotiating long-term contracts with price adjustment mechanisms, and forming strategic alliances with key suppliers to de-risk access to critical raw materials. 

Conclusion 

The 2025 price trends underscore a new reality where financial markets, industrial fundamentals, and resource policies intertwine to dictate material costs. For metal processors, future competitiveness will increasingly depend on the dual capability to manage commodity price volatility and build resilient, efficient supply chains. 

How is your company adapting its procurement and cost management strategies in response to the structural shifts in tungsten and silver markets? Share your insights.

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