With tungsten prices continuing to rise, how can this difficulty be overcome?

Refined Inventory Management (Cost Reduction)

Establish a "Safety Stock Warning Line": Set a minimum inventory threshold for tungsten raw materials based on procurement cycles and production plans to avoid panic buying.

Joint Procurement: Form procurement alliances with multiple non-directly competing suppliers to negotiate discounts with upstream suppliers through larger purchase volumes.

Futures and Long-Term Contracts for Price Locking: Sign long-term agreements with reputable suppliers to lock in prices for the next few months, mitigating fluctuations in the spot market.

Optimize Production and Processes (Efficiency Improvement)

Reduce Process Losses: Review the entire process from powder processing and sintering to grinding, and reduce the loss rate of tungsten powder and tungsten carbide through technological improvements (such as using more precise spray drying towers and optimizing sintering curves).

Improve Yield Rate: Focus on controlling the scrap rate in the pressing and sintering processes. Every 1% increase in yield rate is equivalent to a 1% reduction in raw material costs.

Customer Communication and Pricing Strategy (Poly)

Implement "Price Linkage Clauses": Involve new and key clients in contracts stipulating that product prices can be adjusted accordingly when the prices of major raw materials (tungsten, cobalt) fluctuate by a certain percentage. This is a common and fair practice in the engineering field for dealing with commodity price volatility.

Optimize Product Pricing Structure: Break down product prices into "material costs" and "processing value-added," allowing clients to clearly see your value proposition, rather than just the materials themselves.