Whether it’s a solid carbide end mill, a pack of indexable inserts or a few replacement tips for that new modular drill, higher costs have come to the tool crib.

The biggest driver behind this phenomenon is one that some manufacturing professionals may not consider: the rising cost of tungsten carbide and the other raw materials used in cutting tool production, all of which are squeezing margins for machine shops and suppliers alike.

As a result of this inflationary pressure, purchasing managers and shop supervisors are looking for ways to cut costs, which is an effort that starts by treating carbide tooling as a managed asset rather than a consumable.

But cutting costs doesn’t have to mean cutting performance. From calculating the true cost per edge to determining the right speeds, feeds and toolpaths, it’s possible to achieve maximum productivity from every carbide dollar.

For advice, we turned to Bill Koscelnik, Kennametal’s senior manager of national distribution, and Dan Tucker, SE product specialist-SAA with Sandvik Coromant US. They both had plenty to say about cutting tool costs while offering some tips on why shops should recondition or at least recycle that tired cutter, and why supplier partnerships outperform spot buys.

Why Carbide Costs Are Rising: Understanding the Supply Chain Pressure

Before we talk about fixing the problem, let’s do what any lean-minded shop would do and run a quick root cause analysis. Think of it as a round of the “5 whys,” starting with the most basic question of all: Why are carbide costs climbing in the first place?

Tucker points to severe Chinese export controls, coupled with environmental crackdowns that cut mining output by more than 6 percent, as a driving factor. “In addition, we’ve seen explosive growth in the military and defense sector; panic buying and stockpiling; and surging demand from high-tech industry, electric vehicles, oil and gas drilling and quantum computing,” he says.

The result? Since early 2025, tungsten powder prices have more than doubled. With that, ammonium paratungstate (APT), the core chemical intermediate used in cemented carbide production, leaped from $335 to $1,100 per MTU. Another key ingredient—cobalt—spiked more than 200 percent. “Add it all up, and the cemented carbide rods used to make most solid round tools are rising 80 percent year over year,” Tucker says.

Video: Why Tungsten Carbide is SO EXPENSIVE Lately

Calculating Your True Cost Per Edge: The Metric That Matters Most

Koscelnik begins with a brief explanation of this critical yet often misunderstood (or at least misapplied) metric. “At a basic level, cost per edge is pretty straightforward: the cost of the insert divided by the number of usable cutting edges,” he says. To measure the true cost per edge, he says, you need to consider other factors such as tool life and tool quality.

“For example, lower-cost inserts may sound like a good choice up-front, but inconsistent tool life or unexpected breakage can quickly drive up the real cost in production,” Koscelnik says. “So my advice to customers is to look at durability, consistency and application fit to get a much better picture of overall value to make informed tooling decisions.”

Tucker agrees, noting that inserts in certain indexable cutters may have a higher cost per edge but deliver far greater output. Consider a CoroMill MS20 square-shoulder face mill. As its name suggests, this solution can perform face milling, shoulder milling, ramping, helical interpolation and pocket milling. But with only two corners and a price tag of roughly $30 per insert, the cost per edge is $15.

Now compare that to the eight-sided inserts in a CoroMill MF80, which sell for about the same price. The cost per edge here drops to $3.75, yet the cutter is primarily for higher-volume work, where cost per edge is the top consideration. “If you’re only facing, then the MF80 will be the most economical choice without giving up productivity. Otherwise, shops should consider the greater flexibility and performance gains they’ll get with cutters like the MS20, with geometries designed for demanding applications,” Tucker says.

Extending Carbide Tool Life With the Right Speeds and Feeds

Most cutting tool providers recommend visiting their websites for the correct cutting parameters, and Kennametal is no different. As Koscelnik points out, spindle speeds too high for the application generate excessive heat and rapid edge wear. Run too low and the tool rubs instead of cutting, which again leads to shortened tool life and breakage.

Feed rate has a similar effect. “Each insert geometry requires that you push the tool hard enough for proper chip formation—go too slow and the insert rubs rather than cuts; too fast and it can chip or break,” he says. “As for depth of cut (DOC), it’s much like feed rate—a factor of the insert geometry, as well as setup rigidity, workpiece material and so on—which is why selecting the correct insert for the desired DOC is essential for any machining application.”

Like Kennametal, the Sandvik Coromant website is replete with feed and speed calculators and cutting tool recommendations. And while Tucker fully supports tool life and process improvement, he warns against pushing tools too hard. Doing so can lead to accelerated wear and tear on the machine, elevated component costs and the risk of catastrophic part damage, not to mention the need for expensive premium tooling and extensive trial and error while operators dial in the process.

His recommendation? “Aim for 80 percent efficiency,” Tucker says. “In other words, run tools at 80 percent of the max recommendation. Even backing off 10 to 15 percent might yield a 50 percent increase in tool life. With that, it’s important to refresh or change tools at a predictable part count versus running to failure. Prioritize predictability.”

Video: How to Maximize Carbide Efficiency

Why OEM Reconditioning Beats Third-Party Regrinding

Tucker says shops should also prioritize tool reconditioning, but do it the right way. “The common mistake small- to mid-sized shops make is using a local grinding house for tool resharpening, which must then reverse engineer the geometry and coatings. Though it might be cheaper, it comes at a cost of ‘not like new’ performance,” Tucker says. “By comparison, the grinders and coating chambers Sandvik Coromant uses for reconditioning are the same equipment that made the tools in the first place, so we guarantee like-new performance.”

Carbide Recycling Programs: How to Turn Scrap Tooling Into Credit

Koscelnik is also a fan of tool reconditioning, noting that high-performance drills and end mills can easily achieve tool life close to that of new, but at a much lower cost. For a commodity tool, however, it often makes more sense to replace it with a new one and send the scrap carbide back to Kennametal for recycling.

“It’s a great way to turn used tools into cash while also contributing to greener manufacturing,” he says.

Tucker seconds this. “With the price of recycled carbide at around $32 per pound, it only makes sense,” he says. “After all, 50 pounds of carbide is nearly $1,600, which is money that goes right to your company’s bottom line.”

Vendor Partnership vs. Spot Buying: Why Your Supplier Relationship Affects Cost

The two agree on several additional points, one of them being the need for strong partnerships with their customers. “With a supplier relationship, you often get more consistent and lower costs, versus spot buying where you can easily pay a premium price,” Koscelnik says.

According to Tucker, “spot buys” may give shops the flexibility to purchase from whomever they desire, but doing so most likely comes at higher prices and with the risk of stock being unavailable.

“If we know company XYZ is going to use 2,000 inserts in a year, a formal long-term agreement means we can manufacture the needed inventory ahead of time, dedicate it to that customer and ensure they get the best possible pricing,” Tucker says. “On the flip side, no agreement means we’ll adjust our inventory levels based upon current market demand, so those inserts might not be there when the customer places their order.”

The Hidden Costs of Stockpiling Carbide (And a Better Approach)

Of course, shops unwilling to commit can always do what Tucker suggested earlier was one of the root causes of rising carbide costs: stockpile cutting tools. This practice might avoid the potential stock-out just mentioned, but it comes with other costs:

• Locks up much-needed working capital.

• Leads to material degradation and damage, such as physical chipping of the carbide.

• Ties the shop into old technology when new advancements are released.

• Typically increases inventory holding costs by 20 percent to 30 percent.

The answer? “Work with your suppliers to develop buying agreements that benefit both parties, and ensure that cutting tools will be there when needed,” Tucker says. “This yields the best pricing and delivery security.”

Koscelnik offers an alternative path. “I’d point them to our ToolBOSS vending system to help build and manage inventory while maximizing productivity. It tracks tooling usage in real time and can also be set to calculate demand, place orders automatically and more.”