Let us work side by side to transform market fluctuations into the foundation for the next stage of growth.
Dear Partners and Industry Colleagues:
The current market is undergoing a period of transformation. The global manufacturing recovery and growing demand in emerging sectors are driving changes in the supply and demand of key raw materials such as tungsten carbide. Supply chain tensions and market volatility have become common challenges facing the industry.
As your industrial cutting solutions partner, we believe that good cooperation involves not only sharing the fruits of success but also open communication and joint efforts to overcome difficulties. Here, we explain our assessment of the current situation, the actions we have taken, and our plans to ensure long-term win-win outcomes for both parties.
The current market volatility is not accidental. The green energy transition, the widespread adoption of electric vehicles, and the upgrading of high-end electronics manufacturing have brought about long-term demand growth; simultaneously, short-term factors such as the pace of upstream mining investment and international logistics efficiency have impacted costs in the cemented carbide cutting tool and precision machining sectors.
This situation is accelerating industry adjustments, testing companies' supply chain stability, technological reserves, and customer service capabilities. The focus of competition is shifting from simply lowering prices to total cost control and improving production efficiency. This is both a challenge and an opportunity for industry upgrading.
Faced with market changes, we take proactive measures, with the core focus on ensuring stable supply and safeguarding the value of our partnerships:
1. Strengthening Supply Chain Security.
We deepen long-term cooperation with core tungsten carbide suppliers, sharing demand forecasts and joint planning, securing production capacity and priority supply rights, and reducing the impact of price fluctuations on delivery.
2.Improving Internal Efficiency.
We implement lean production, optimize various process links, and alleviate some cost pressures. We continue to invest in automated production lines and intelligent management systems to improve efficiency and product consistency, maximizing resource value.
3. Creating Value through Technology.
Our R&D team focuses on two aspects: first, improving tool structure and process methods, exploring the use of welding technology to reduce the application of some materials; second, improving the overall utilization rate of tungsten carbide, maximizing cutting precision and stability; and third, exploring the application and value of alternative materials in actual production.
Market fluctuations will eventually stabilize, and the cooperative relationships established during this period will be even stronger. We see this stage as an opportunity to deepen cooperation and propose the following initiatives:
Thank you for your trust and support. During this critical period of industry transformation, Shenggong Tungsten Carbide Slitting Tools will increase investment, accelerate innovation, and deepen cooperation to be your strong support. We not only want to weather the current challenges with you but also want to work together to build a more efficient and stable future.
Post time: Feb-02-2026
