Why tungsten carbide prices have surged and how PPA locked in lower costs for Australian contractors
Throughout 2025 and now at the height of OEM pick prices in June 2026, anyone buying milling picks or stabiliser teeth in Australia have noticed their invoices looking different. Prices that had been relatively stable for years have moved sharply. For contractors already managing tight project margins within contracts, it has landed hard.
The background: China’s tungsten export controls
Tungsten is one of the hardest naturally occurring metals on earth, and tungsten carbide, the composite material made from it, is what gives milling picks and stabiliser teeth their ability to cut through bitumen, aggregate, and compacted road base without wearing out in hours.
China controls an overwhelming share of global tungsten production. In January 2025, the Chinese government introduced formal export controls on tungsten and tungsten-related products as part of a broader series of critical minerals restrictions. The immediate effect was a reduction in available supply to international manufacturers and a significant increase in the price of raw tungsten carbide on global markets.
How the price increase flowed through the market
Manufacturers who had not secured supply agreements ahead of the controls found themselves either paying significantly more for raw material or managing allocation constraints that affected their production schedules. OEM suppliers who tend to operate on fixed pricing structures and longer procurement cycles, were particularly exposed. Some announced formal price increases; others adjusted quietly. Either way, Australian contractors buying OEM picks started paying more.
For some pick types, the price movement from pre-controls to post-controls has been close to a tripling of OEM list price, we’ve seen picks that were $6.60 now listed at $21.90. Even well-positioned aftermarket suppliers have seen meaningful increases the raw material cost is real. The question is how much of it the supply chain absorbs vs passes on.
What PPA did differently
PPA was founded on a direct relationship with manufacturers in China not through trading intermediaries, but through direct factory partnerships developed over years of working in the civil construction industry in Western Australia.
We’re not immune to the volatility of raw material markets, no one in this industry is. But our goal has always been to provide a cost-effective solution for Australian contractors by keeping our margins lean and absorbing as much of the market movement as we can. When you’re quoting a job weeks out, the last thing you need is a surprise on your picks quote. We work hard to make sure that doesn’t happen.
What this means for contractors buying from PPA
Our pricing is more competitive relative to OEM than it has ever been, and we have stock. We import via full container load directly through Fremantle, hold stock in Western Australia, and can supply nationally. We currently have 22mm shank teeth in stock and ready to ship, with 20mm shank picks on the way, suitable for W6 and W7 applications and offering a genuine cost-effective alternative without compromising on quality.
If your current supplier is quoting pricing that’s moved significantly in the last six months, or you’re waiting on stock coming in, the conversation is worth having.
