Sumitomo Electric Hardmetal (Thailand) Ltd. would like to announce that we will change our prices^* for our cutting tool products ordered from August 1, 2022 thereafter.

In addition to the risks posed by the coronavirus pandemic and the long-term political and geopolitical situation, Sumitomo Group is facing a business environment filled with continuing difficulties.

Reason 1. Cost of raw materials have increased

There is a supply instability in China where more than 80% of the production of tungsten is located. The instability is due to several situations such as the recovery of demand in China and Western countries after COVID, and Russia-Ukraine conflict. This has caused the price of raw material to rise by 30% vs previous year.

The price of cobalt has also increased with the rapid expansion in demand of battery material due to the increased production of electric vehicles (EV).

Reason 2. Cost of other processes have increased

Due to the economic situation, Sumitomo Group is facing a changing business environment such as rising labor costs, logistics costs, and other utility costs. We have made efforts to streamlining our production, logistics, sales and administrative departments. However, we cannot resolve these issues through our own corporate efforts alone and it has proved difficult to maintain current prices for cutting tool products.

In this context, we (SETA) have decided to implement price revision to further improve the stable supply of products and services to our customers.

The target products and price revision rates are as shown below.

Changes by Product

^*These are our company's sales prices to our distributors and direct customers.
Resale prices are not regulated by our company.