In the industrial market, many customers often have questions like:
Why do some drill bits or taps look very similar but have so big differences on price? Especially in these two years, many clients have clearly noticed obvious fluctuations in cutting tools prices.
Actually, the price of drill bits and taps is not determined by any single factor, It’s a result from a combination of raw materials, manufacturing processes, performance requirements, and market conditions. We will briefly discuss some important factors to explain the underlying pricing logic. Let's take a look at the actual composition of costs from raw materials to manufacturing.
1.Cost of raw material, the basis of pricing
The core material of drill bits and taps is high-speed steel (HSS).
The reason why HSS has excellent cutting performance is its alloying elements inside, such as: Tungsten (W), Molybdenum (Mo), Cobalt (Co) etc. We heard different HSS grades, HSS 4341, M2, M35, M42, the difference is the ratios of these alloying elements. Higher alloy levels enhance the material's heat resistance, wear resistance, and use life, but also increase the material cost. It can be said that raw material costs determine the “floor” of the product's price.
Common high-speed steel grades have obvious differences in performance and cost:
• Standard HSS / HSS 4341: Suitable for general material machining, relatively low cost
• M2: Stable overall performance, widely applicable
• M35 (cobalt-containing): Enhanced heat resistance, suitable for stainless steel and similar materials
• M42 (high-cobalt): Superior wear resistance and red hardness, ideal for high-intensity continuous machining
Higher alloy content not only increases raw material costs but also makes manufacturing more challenging, which is reflected in the final product price.
In high-speed steel, tungsten(W) is one of the most important alloying elements, playing a key role in the red hardness and wear resistance of drill bits and taps.
In the past two years and especially this year, public industrial data shows that prices for tungsten-related raw materials have remained high and volatile. The underlying reasons include, but are not limited to:
• High concentration of tungsten ore resources, resulting in relatively tight supply
• Rising environmental compliance and mining costs
• Increased downstream demand from high-end manufacturing, new energy, and military industry.
For high-speed steel production, this price change is not a short-term occasional event but a long-term and structural shift in costs. As a result, the manufacturing costs of drill bits and taps made from high-speed steels like M2, M35, and M42 have also increased. It’s a common reality faced by the whole industry.
The picture shows tungsten price trend from January to October 29, 2025. As of late December 2026, tungsten prices continue to rise. Compared to the beginning of 2026, prices for major tungsten products have increased significantly. Industry data shows that prices for core raw materials—including tungsten concentrate, ammonium paratungstate (APT), tungsten powder, and tungsten powder for cemented carbides—have generally increased by over 100%. Prices for certain tungsten products and cobalt powder have even approached or over 200% growth, keeping overall high-speed steel raw material costs at a high level.
2.Quality of heat treatment, the performance foundation of the product
Heat treatment is one of the most important but not visible procedures during production. It directly determines the tool's hardness, toughness, and overall stability during actual machining. A well-designed heat treatment achieves a great balance between hardness and toughness. Unstable heat treatment may lead to chipping, breakage, or inconsistent service life. Also, a stable and controllable heat treatment process typically requires higher energy consumption, stricter temperature control, and more complex process management. However, these investments are not easily found from the product's appearance, they significantly determine its performance in real-world applications.
3.Manufacturing processes and quality control, affect the machining accuracy and consistency
Except for materials and heat treatment, manufacturing processes and quality control systems collectively determine the machining accuracy, consistency, and long-term stable performance of drill bits and taps during actual use. In actual production, cost differences between different manufacturing levels are mainly reflected in the following aspects:
• The overall manufacturing process design, such as defect rate control
• Whether use multiple precision grinding steps or single-step roll-forged
• Precision control of geometric parameters like cutting edges, helical flutes, and back angles
• For tap products, the level of control over lead accuracy and cutting edge consistency
Higher machining precision means higher equipment investment, longer processing time, and stricter process control. These factors directly influence manufacturing costs and also influence product stability during mass production.
Stable product quality relies on a systematic and continuous quality control system. For industrial users, batch consistency and long-term stable supply capability are more important than the price of a single order. Comprehensive quality control typically includes:
• Raw material inspection
• Precision and radial runout inspection
• Hardness testing and batch consistency control
• Violent drilling testing
These investments not only find problems but also make sure each batch of products has similar and predictable performance. Additionally, use life is more important than unit price. In industrial applications, a low unit price does not equal to low total cost. Products with short life and poor stability often lead to more frequent tool changes, machining interruptions and fluctuations in finished product quality. Therefore, more professional users are focusing more on unit machining costs rather than the simple price of a single drill or tap.
Post time: Dec-24-2025