Development of Chinas Cemented Carbide Industry and Supply and Demand of Raw Materials

(This article was originally published in the second issue of "Window of Haisheng" in 2022, by Zhu Xiusheng)

preface

Hard alloy is a type of tungsten product with a higher proportion of tungsten consumption. In the past 10 years (2012-2021), the consumption of tungsten metal in hard alloy products has reached about 59%, and the proportion of tungsten metal in hard alloy products is over 80%. The consumption of tungsten raw materials in China is mainly to meet the needs of the hard alloy industry. Therefore, the development of hard alloys is closely related to the supply of tungsten raw materials.

In this article, I will analyze the relationship in the development process of China's hard alloy industry based on the data I have mastered, mainly in terms of time.

1、 1950s

After the founding of the People's Republic of China, the leaders of the Party and government were eager to establish the industrial system of New China and lay the foundation for China's initial industrialization, including the Chinese tungsten industry.

As early as July 1947, the People's Government took over the Dahua Electric Smelting Plant of the former invading Japanese army and renamed it Dalian Steel Plant. It also decided to resume hard alloy production, and in 1948, produced 30 kilograms of tungsten cobalt hard alloy, which was the earliest in China, creating a history of tungsten smelting and hard alloy production in China

After the founding of the People's Republic of China, the development of the hard alloy industry was accelerated:

Among the 156 key projects implemented by the former Soviet Union to aid China in 1954, it was determined to build a powder metallurgy production project in Zhuzhou. The Yangtze River Smelter (601 Factory), which was completed and put into operation on April 1, 1958, is an important symbol of China's hard alloy industry achieving large-scale production. The factory was named Zhuzhou Hard Alloy Factory in 1972, with a designed hard alloy production capacity of 500 tons at that time.

Figure 1: Development of Cemented Carbide Production Capacity in the 1950s:

As of 1959, the cemented carbide enterprises established in the 1950s include

Dalian Steel Plant Cemented Carbide Workshop

Workshop 63 of Chongqing Electric Factory (791 Factory)

Mudanjiang North Tool Factory (No. 121 Factory) Alloy Branch

Shanghai Light Bulb Factory

Drilling Research Institute of the Ministry of Geology and Mineral Resources

Harbin Tool Research Institute

Tianjin Cemented Carbide Research Institute

Tianjin Cemented Carbide Tool Factory

Shanxi Institute of Mining and Technology Mechanical and Electrical Factory

Shanghai Institute of Materials Application Science, Ministry of Machinery Industry

Changjiang Smelter (601 Factory)

Xi'an Qinghua Electrical Appliance Manufacturing Factory (804 Factory) Qinghua Powder Metallurgy Factory

There are a total of 12 companies with a hard alloy production capacity of 1035 tons. Calculated based on an 85% capacity utilization rate, it can produce about 880 tons of hard alloy products and consume 1600 tons of tungsten concentrate

In addition to hard alloys, as of 1959, there were 5 enterprises producing tungsten alloy materials, 1 enterprise producing tungsten chemical products, and 2 enterprises producing tungsten iron (Jilin Ferroalloy Factory and Jinzhou Ferroalloy Factory)

In 1959, the production of tungsten and iron was estimated to be 4697 tons, which consumed approximately 6810 tons of tungsten concentrate; The production of products by five tungsten alloy material enterprises requires approximately 1000 tons of tungsten concentrate.

Combined with the consumption of tungsten chemical enterprises, the total consumption of tungsten concentrate in domestic tungsten smelting production in 1959 was 9500 tons. In domestic consumption, the proportion of tungsten concentrate consumption in hard alloy production is only 16.84%, mainly tungsten iron production consumption, accounting for 71.68%.

Supply of tungsten raw materials in the 1950s

After the founding of the People's Republic of China, the government took over all the tungsten mining engineering departments run by the former Kuomintang Resource Committee, and gradually established state-owned tungsten mines, steadily carrying out socialist transformation, and gradually implementing mechanized production.

In 1954, the tungsten mining field was also implemented within the Soviet Union's 156 China aid project, which included three mines and one station: Dajishan tungsten mine, Xihuashan tungsten mine, Kuimeishan tungsten mine, and the supporting Shangyou hydropower station with a power generation capacity of 60000 kilowatt hours.

Figure 2: China's tungsten concentrate production in the 1950s

According to the agreement at the time, as an additional condition to the loan, the Soviet Union requested "to supply all the remaining tungsten, antimony, lead, and tin that China no longer uses to the Soviet government" for a period of 14 years, with a total of 134000 tons of tungsten concentrate to be provided from 1955 to 1968, and 44000 tons from 1955 to 1959. Therefore, at that time, the tungsten concentrate minerals produced by tungsten mines mainly provided export demand, and it was necessary to ensure the quantity of Soviet debt repayment. The balance can only meet the needs of domestic tungsten smelting production.

Table 1 Tungsten Concentrate Quantity Provided to the Domestic Smelting Industry in the 1950s (10000 tons)

Tungsten smelting enterprises in China began to develop in the late 1950s. From the table above, it can be seen that there was a considerable surplus available for domestic consumption after 1956.

In addition, in 1958 and 1959, due to the influence of leftist trends, tungsten mines also made a great leap forward, with disorderly growth in production, reaching 55900 tons and 60500 tons respectively, with a difference of 23000 tons and 28900 tons compared to export volume. Domestic product production required less than 10000 tons. Therefore, the tungsten concentrate produced domestically in the 1950s fully met the development needs of the domestic hard alloy industry.

2、 In the 1960s

In the 1960s, China established 12 more hard alloy enterprises, including:

Beijing Cemented Carbide Factory built in 1963

The Powder Metallurgy Plant of Zhongnan Institute of Mining and Technology, built in 1964

In 1966, the Mudanjiang Tool Factory and Chengdu Cemented Carbide Tool Factory, among others, were established with the assistance of the 121st Factory

As of 1969, there were 24 hard alloy enterprises with a production capacity of 2308 tons, an increase of 1.23 times compared to 1959.

Figure 3 Cemented Carbide Production Capacity in the 1960s

In 1969, the production capacity was 2308 tons, and calculated based on an 85% capacity utilization rate, it consumed approximately 3700 tons of tungsten concentrate.

At the same time, the number of tungsten alloy material production enterprises increased by 10 to 15, and the number of tungsten iron production enterprises increased by 1 (Emei Iron Alloy Factory) to 3. In 1969, the production of tungsten iron was 7005 tons, and the consumption of tungsten concentrate was 10150 tons. Adding tungsten alloy materials and chemical enterprises, the consumption of tungsten concentrate was about 15000 tons. In total, the consumption of tungsten concentrate for domestic tungsten products was about 18700 tons

In domestic consumption, hard alloys account for 19.79%, an increase of 2.95 points compared to 1959; Tungsten iron consumption accounts for 54.28% and remains the main consumer target.

Supply of tungsten raw materials in the 1960s

The impact of the Great Leap Forward continued until 1960, when high production continued, reaching 55200 tons. Due to the influence of the Great Leap Forward from 1958 to 1960, the production of tungsten concentrate reached 559, 609, and 55200 tons, respectively. Due to the one-sided pursuit of high production in tungsten mines and the tendency to mine more and excavate less, the national tungsten mining revenue per 10000 tons decreased from 372 meters in 1957 to 167 meters in 1960;

In 1961, in response to the serious difficulties in national livelihoods and the serious lag in industrial development caused by leftist erroneous ideas since 1959, the central government proposed the eight character policy of adjustment, consolidation, enrichment, and improvement. Tungsten mines have also started adjustment work. Firstly, the excessively high production indicators will be lowered, and the technical policy of "mining first, simultaneous mining, excavation first, and rich and poor mining" will be conscientiously implemented. The adjusted annual production of tungsten concentrate will begin to enter a reasonable and stable stage.

Figure 4: China's tungsten concentrate production in the 1960s

Export remained the main direction of tungsten concentrate in China until 1968, when China fully paid off the amount of tungsten concentrate used as debt repayment under the Sino Soviet Agreement.

Table 2 Tungsten Concentrate Quantity Provided to the Domestic Smelting Industry in the 1960s (10000 tons)

In 1969, the domestic supply reached 17800 tons, and the processing of hard alloys, ferrotungsten, and tungsten materials required about 18700 tons. Considering that the balance in 1968 reached 24700 tons, it can fully meet the demand in 1969.

The export of tungsten smelting products began in 1958, and in 1959, the export of tungsten smelting products reached 2.346 million US dollars. Based on this, it can be inferred that after adjusting the mine production in the 1960s, it can fully meet the supply and demand balance of the entire tungsten industry in that era.

3、 In the 1970s

In the 1970s, China's hard alloy industry continued the growth trend of the 1960s, marking the completion and operation of the 764 Factory of the Ministry of Metallurgy in 1971.

In 1964, the country decided to build China's second large-scale tungsten smelting and hard alloy base in the mainland. Construction began in 1966 and was completed and put into operation in October 1970. The designed hard alloy production capacity was 400 tons, with a supporting APT production capacity of 1000 tons and a tungsten powder production capacity of 500 tons. In 1972, it was renamed as Zigong Hard Alloy Factory.

In addition, there are also

Shanghai Cemented Carbide Factory built in 1970

The hard alloy workshop of Shaanxi Steel Plant, built in 1971

Jinan Hongqi Cemented Carbide Factory (renamed as Jinan Metallurgical Science Research Institute in 1982) and Nanchang Cemented Carbide Factory, completed in 1972

In 1973, Wuxi Drilling Tool Factory and Ganzhou Selection Factory established a hard alloy production line

In 1994, Baoding Powder Metallurgical Plant and Hubei Jingjiang Agricultural Machinery Factory (949 Factory) built cemented carbide production lines

In 1975, Xiangfan Cemented Carbide Factory was also built

In 1976, Nanning Cemented Carbide Factory, Taiyuan Cemented Carbide Factory, and Guiyang Wudang District Cemented Carbide Factory were built

Established Xuzhou Cemented Carbide Factory in 1977

Established in 1979, including the Hard Alloy Tool Factory in Linqu County, Shandong Province

As of 1979, there were 43 hard alloy enterprises in China, with a production capacity of 4630 tons, an increase of 19 compared to 1969, and a production capacity increase of 100.61%

Calculated based on a production capacity utilization rate of 85%, the consumption of tungsten concentrate in hard alloy production in 1969 was 8100 tons. In the 1970s, there were a total of 25 enterprises producing tungsten alloy materials and 3 tungsten iron production enterprises. In 1979, the production of tungsten iron was 10507 tons, and 15240 tons of tungsten concentrate were consumed. In addition, the production of tungsten materials and tungsten chemical industry required a total consumption of about 25000 tons of tungsten concentrate.

In domestic consumption, the proportion of tungsten concentrate consumed by hard alloys in 1979 was 32.4%, a significant increase of 12.61 points compared to 1969; The proportion of tungsten and iron still accounts for the top, accounting for 42.03%.

Supply of tungsten raw materials in the 1970s

In the 1970s, China's tungsten concentrate production was relatively stable, with an average annual output of 36600 tons and an average export volume of 15900 tons,

Table 3 Tungsten Concentrate Quantity Provided to the Domestic Smelting Industry in the 1970s (10000 tons)

In 1979, the amount of tungsten concentrate that could be used domestically reached 22600 tons, but the consumption of hard alloy, tungsten iron, and tungsten alloy materials was 25000 tons of tungsten concentrate. There was a certain gap between supply and demand, mainly solved through the utilization of waste tungsten in China since the 1970s.

Since the 1970s, there have been some enterprises in China that produce hard alloys from waste tungsten

Guiyang Wudang District Cemented Carbide Factory, put into operation in 1971

The Baoding Powder Metallurgy Plant and the Special Tools Branch of the State owned Jianchang Machinery Factory, which were put into operation in 1974

Shandong Linqu Cemented Carbide Factory, put into operation in 1975

Taiyuan Cemented Carbide Tool Factory, put into operation in 1976

Xuzhou Cemented Carbide Factory and other enterprises, which were put into operation in 1977, fully or partially utilize waste tungsten as raw materials to produce products

The Qinghe waste tungsten distribution center formed in the 1970s laid a solid foundation for the utilization of waste tungsten. In 1979, 25 hard alloy enterprises used waste tungsten as raw material, and the production capacity of hard alloy reached 990 tons.

4、 In the 1980s

In the 1980s, the development of the hard alloy industry slowed down, and new enterprises with larger production capacity included:

Wuzhou Cemented Carbide Factory in 1981

In 1985, Qinghe County Cemented Carbide Factory, Jianghan Drill Bit Factory Cemented Carbide Workshop, etc

As of 1989, there were 81 enterprises with a production capacity of 7600 tons, and the number of enterprises increased by 38. However, most of them were small and micro enterprises, with a production capacity increase of only 64%

Calculated based on an 85% capacity utilization rate, in 1989, the production of hard alloy was 6460 tons and the consumption of tungsten concentrate was 11800 tons

In 1989, there were 40 tungsten alloy material enterprises, but there were still three tungsten iron enterprises. In 1989, the production of tungsten iron was 7900 tons, and 11500 tons of tungsten concentrate were consumed. In addition, alloy materials and chemical industry required the consumption of 14000 tons of tungsten concentrate

Adding in the consumption of hard alloys, a total of 32200 tons of tungsten concentrate were consumed,

In domestic consumption, the proportion of tungsten concentrate consumed by hard alloys in 1989 was 36.65%, an increase of 4.25 points compared to 1979; Tungsten iron accounts for 35.71%, and the consumption of hard alloys has begun to surpass that of tungsten iron, becoming a major consumer area in the domestic tungsten industry.

Supply of raw materials in the 1980s

In the 1980s, the production of tungsten concentrate increased, with an average annual output of 47500 tons, an increase of 10900 tons or nearly 30% compared to 36600 tons in the previous decade

Table 4 Tungsten Concentrate Quantity Provided to the Domestic Smelting Industry in the 1980s (10000 tons)

In the 1980s, the average annual export volume of tungsten concentrate was 22300 tons, and the average annual export volume of tungsten concentrate available for domestic consumption was 25200 tons. An increase of 4600 tons compared to the average annual output of 20600 tons in the 1970s

In 1989, the available tungsten concentrate for domestic consumption was 28000 tons, while the production of hard alloys, alloy materials, and ferrotungsten consumed 32200 tons of tungsten concentrate

Meanwhile, 2525 tons of tungstic acid, 714 tons of tungsten trioxide, 9912 tons of APT and 930 tons of other tungstate were exported in 1989, consuming 20600 tons of tungsten concentrate

From the above data, it can be seen that there is a significant difference in supply and demand. In fact, due to the erroneous policy guidance of "large mines being opened up, small mines being opened up, and water flowing quickly" in the mid to late 1980s, almost all domestic metal and non-metal mines, including tungsten mines, were subjected to indiscriminate mining. A large number of townships, towns, villages, and individual mining enterprises emerged like mushrooms after a rain, and the number of civilian tungsten concentrate mining increased sharply year by year. Coupled with the increase in the utilization of waste tungsten, the overall amount of tungsten concentrate that could be provided to domestic demand in the 1980s was actually very abundant. So much so that due to supply exceeding demand, the export price of tungsten concentrate has decreased:

Figure 5 Export Prices of Tungsten Concentrates in the 1980s

The decrease in prices indicates the emergence of a market pattern where supply exceeds demand. In order to solve the problem of unsold tungsten concentrate and alleviate financial difficulties in some mines, in November 1982, the state collected and stored 10000 tons of tungsten concentrate. In January 1987, it was decided that the state would purchase and reserve another 4800 tons. Fully explain the market pattern of oversupply caused by the 1980s.

So it can be confirmed that in fact, the market can fully meet the raw material needs for smelting and processing products in 1989.

5、 In the 1990s

The 1990s was an era of rapid development in the hard alloy industry. The supply and demand mechanism of the planned economy was changed to a market economy, and the emergence of private economy was an important driving force for rapid development

With the reform and opening up, some foreign hard alloy enterprises have also emerged, such as Xiamen Chunbao, Suzhou Lugang, Changfeng (Nanjing), Dick (Hunan), etc

Especially in Zhuzhou, Hunan, the production capacity increased from 4 in 1989 to 19 in 1999, from 2310 tons to 4180 tons, accounting for 1/4 of the national total.

As of 1999, there were 234 hard alloy enterprises with a production capacity of 16700 tons, an increase of 122.51% compared to 1989

In the state of market economy, the average production capacity utilization rate has decreased. According to the statistics of the Cemented Carbide Branch, 52 enterprises had a production capacity of 10330 tons in 1999, a production capacity of 7135 tons, and a production capacity utilization rate of 69.07. Based on 70% calculation, in 1999, 234 enterprises had a production capacity of 16700 tons, resulting in a production capacity of approximately 11690 tons and a consumption of 21200 tons of tungsten concentrate

Due to the rapid development of the tungsten alloy material industry in the 1990s, there were 164 tungsten alloy material enterprises in 1999, and the demand for tungsten also increased significantly.

Due to work reasons, I have been collecting data on the production of tungsten iron and APT since 1997. I can use the amount of tungsten concentrate required for tungsten iron and APT production to more accurately calculate the demand for tungsten concentrate.

In 1999, APT production was 39200 tons and tungsten concentrate consumption was 56400 tons

In 1999, the production of ferrotungsten was 9430 tons and the consumption of tungsten concentrate was 13700 tons

In 1999, the production of tungsten was 510 tons and the production of tungstic acid was 300 tons, consuming 12000 tons of tungsten concentrate

Export of tungsten concentrate is only 80 tons

A total of 71400 tons of tungsten concentrate are required

Supply of raw materials in the 1990s

In the 1990s, the average annual production of tungsten concentrate was 31000 tons, and the production showed a decreasing trend year by year:

Figure 6: Production of tungsten concentrate in the 1990s

In 1999, the statistical production of tungsten concentrate was only 39200 tons, and with 1950 tons of imported tungsten concentrate, it was only 41200 tons, a difference of 714-412=30200 tons from demand

How can I make up for such a large difference in raw materials? How to solve the problem of raw materials in 1999?

One is that the statistical output does not match the actual output, and a large number of civilian mining cannot be counted.

Second, the export volume decreased significantly in the early 1990s. In June 1991, the United States Department of Commerce proposed to levy an additional 130~151% Anti-Dumping Duty on China's tungsten concentrate, and Zui finally ruled on September 30. The high tariffs have effectively curbed the entry of Chinese tungsten concentrate into the US market.

In addition, there has been a drastic change in East Jiangsu, resulting in a significant decrease in exports to East Jiangsu countries

Starting from January 1991, China announced a suspension of export of tungsten concentrate (suspension of quotation and temporary suspension of signing new contracts for tungsten concentrate). In October, the Chinese government announced a reduction in tungsten concentrate production and export volume starting from 1992.

Figure 7: Export volume of tungsten concentrate in the 1970s and 1990s

In 1999, there was almost no export of tungsten concentrate

In addition, the utilization of waste tungsten increased significantly in the 1990s, and as of 1999, multiple clusters of waste tungsten utilization enterprises had formed among domestic hard alloy enterprises:

Mudanjiang, Heilongjiang

Renqiu, Qinghe, Nangong, and the Forbidden City in Hebei Province

Linqu, Shandong, Jinan

Danyang, Jiangsu

Zhejiang Leqing, Taizhou, etc

Due to the above reasons, the market has once again experienced an oversupply situation, and the market inventory has been increasing year by year. The National Reserve Bureau began purchasing another 3000 tons of tungsten concentrate reserves in October 1996

6、 In the 2000s

Entering the new century, with the rapid growth of China's manufacturing industry, the hard alloy industry continues to develop at a high speed. In the 2000s, the number and production capacity of cemented carbide enterprises increased significantly again. As of 2009, incomplete statistics showed that there were 591 cemented carbide enterprises with a production capacity of 51100 tons, an increase of 202.49% compared to 1999

Among the newly added enterprises, the larger ones are

Yixing Jia in Jiangsu, Hotan Technology, Suzhou Xinrui (relocated from Qianjiang, Hubei), Suzhou Ruisen, Kunshan Changying (relocated from Changsha, Hunan), etc

Zhejiang Dewei, Zhejiang Southern Alloy, Yueqing Aoda, Hangzhou Tianshi, etc. in Zhejiang

Longyan Huarui, Longyan Yongfa, Longyan Jifeng, etc. in Fujian

Jiangxi's Zhangyuan Tungsten Industry, Ganzhou Middle End, Jiangxi Tianhe, etc

Jingmen Diamond in Hubei

Century Special in Hunan, Zhuzhou Jinwei, Lizhou Industrial, Zhuzhou Xidi, Zhuzhou Huarui, Zhuzhou Kent, Zhuzhou Jinggong, Zhuzhou Mingri, Zhuzhou Tongyi, etc

Dongyuan Yongxing, Heyuan Zhengxing, etc. in Guangdong

Chengdu Chuanhard, Chengdu Bangpu, China Tungsten Industry, etc. in Sichuan

At the same time, more tungsten related foreign enterprises are entering China

In the hard alloy industry, there are

IMC (Dalian), Jinan Jiesaibo, Element 6 (Wuxi), Sandvik (Wuxi), Tech (Suzhou), Shiwei (Taicang), Baili Precision (Nanchang), Henan Dadi Alloy, Yiwei (Dongguan), etc

More cemented carbide industry clusters have also emerged

The number of hard alloy enterprises in Zhuzhou region has increased sharply from 19 in 1999 to 104, and the production capacity has increased sharply from 4180 tons to 11160 tons

Other major hard alloy industry clusters:

Location, number of enterprises, production capacity

Mudanjiang, Heilongjiang 20 570

Qinghe Nangong, Hebei 241795

Jiangsu Suxi Chang 533665

Zhejiang Leqing 132950

Fujian Longyan 131200

Guangdong Heyuan 91090

Sichuan Zigong 313500

Sichuan Chengdu 271690, etc

At the same time, the production enterprises of tungsten alloy materials have also significantly increased

Figure 8 Development of Tungsten Alloy Material Enterprises

Tungsten iron production enterprises have also undergone changes, with the emergence and development of private tungsten iron enterprises, especially the completion of the tungsten iron plant in cooperation with private enterprises, which led to the cessation of tungsten iron production in China's two major ferroalloy factories (Jitie and Etie), which had previously produced tungsten iron for more than 50 years. As of 2009, there were 17 tungsten iron production enterprises

In 2009, the production capacity of 41 carbide branches was 14100 tons, with a production capacity of 24400 tons and a capacity utilization rate of 57.79%.

According to this capacity utilization rate, 591 enterprises produce 29500 tons of hard alloy products and consume 53200 tons of tungsten concentrate.

Calculate the demand based on the APT and ferrotungsten produced in the current year:

In 2009, APT produced 73700 tons and consumed 105400 tons of tungsten concentrate

In 2009, the production of ferrotungsten was 8800 tons, and 12700 tons of tungsten concentrate were consumed

Including other consumption, the total consumption of tungsten concentrate is 118500 tons

Supply of raw materials in the 2000s

According to official statistics, in 2009, the national production of tungsten concentrate was 104800 tons, with 9100 tons of imported tungsten concentrate, totaling 113900 tons

The supply of tungsten waste in the 2000s has also significantly increased

Considering that 2009 is the zui low point of the domestic market price

Figure 9: The average annual price in 2009 was a low point

Therefore, in 2009, the domestic market was in a state of oversupply, but the main raw tungsten supply increased significantly in the 2000s

Figure 10: Annual Growth of Tungsten Concentrate Production in the 2000s

The rapid development of the tungsten industry in the 2000s stimulated the further development of the tungsten mining industry. In the 2000s, the production capacity of tungsten mines further expanded, resulting in a significant increase in production

In 2001, the beneficiation and processing capacity of Shizhuyuan Mine increased from 1000 tons/day to 2500 tons/day

In 2003, the mining capacity of Shizhuyuan increased from 589000 tons to 750000 tons, and a large number of migrant workers entered Xintianling for mining, with an annual output of up to 5000 tons

In 2004, Yulu in Luoyang began production, recovering scheelite concentrate from molybdenum tailings. Wukuang acquired Jiangxi Xianglushan tungsten mine as a whole and expanded its mining capacity to 690000 tons. Shizhuyuan's mining capacity expanded to 880000 tons, and Guangdong Sawbankeng tungsten mine was put into operation, with a mining capacity of 550000 tons

In 2005, the newly built Dagangshan tungsten mine with a mining and beneficiation capacity of 900000 tons was put into operation, and the Jixi tungsten mine in Anhui was put into operation

In 2007, the coral mine in Zhongshan, Guangxi resumed production, the Xiaoliugou tungsten mine in Gansu was put into operation, the Baiyinchagan polymetallic mine in Inner Mongolia was put into operation, and the mining capacity of the Shizhuyuan mine was expanded to 1.5 million tons. Yulu increased the beneficiation capacity from 4500 tons/day to 15000 tons/day

In 2008, the integrated Malipo tungsten mine was put into operation, expanding its mining and beneficiation capacity to 400000 tons

In 2009, the mining capacity of Shizhuyuan was expanded to 2 million tons, and Luoyang Molybdenum Industry's self built 4.95 million tons of beneficiation capacity was put into production. The integration of Minmetals with Xintianling was completed, forming an annual processing capacity of 1 million tons

7、 In the 2010s

In the 1990s, the hard alloy industry did not stop its rapid development, private enterprises continued to expand, and foreign enterprises continued to invest in China. As a producer of tungsten raw materials, Ganzhou has also begun to develop into the hard alloy industry. In the 2000s, it grew from scratch and in the 2000s, it has grown to 12 companies with a production capacity of 5070 tons

Major newly established hard alloy enterprises in China include

Hebei Hengkai, Hebei Kena, and Chengde Haotian in Hebei

Shandong Ruixin and Shandong Tiankai in Shandong

OMAX in Jiangsu

Wenzhou Hongfeng in Zhejiang

Anhui's Jifeng Precision, Anhui Hefeng

Xiamen Dahonghan, Fujian Zhihong, and Nanping Bohong in Fujian

Jiujiang Golden Heron, Yushan the Pearl River, Yaosheng Tungsten, Ganzhou Haisheng, Kyocera Precision (Ganzhou), Ganzhou Chuangfeng, Jiangxi Nianlonghui, Ganzhou Xiangrui, Ganzhou Ruike, Jiangxi Xianglu, Jiangxi Haichuang, etc

Luoyang Golden Heron and Henan Zhonggang in Henan

Zhuzhou Sharp, Zhuzhou Tianrui, Zhuzhou Kimberley, Zhuzhou Ruiyou, Zhuzhou Jingte, Zhuzhou Siripu, Zhuzhou Weikai, etc. from Hunan

Guangdong Xianglu in Guangdong

Zunyi Platinum in Guizhou

Mingtaishun in Sichuan, Chuantung in Sichuan, and Liyuan Seiko in Sichuan, among others

As of 2019, incomplete statistics show that there have been 877 cemented carbide enterprises with a production capacity of 100000 tons, an increase of 95.79% compared to 2009

Figure 11 Growth rate of cemented carbide production capacity in different eras

In 2019, 55 statistical enterprises produced 32600 tons of hard alloy, with a production capacity of 47400 tons and a capacity utilization rate of 68.78%

Based on this capacity utilization rate, 877 companies with a production capacity of 100000 tons of hard alloy can produce 68800 tons of hard alloy products and consume 124100 tons of tungsten concentrate

Calculate using APT and ferrotungsten as well:

In 2019, APT produced 119500 tons and consumed 170900 tons of tungsten concentrate

In 2019, the production of ferrotungsten was 8300 tons, and the consumption of tungsten concentrate was 12000 tons

Including other consumption, the total consumption of tungsten concentrate is 183000 tons

Supply of raw materials in the decade

Official statistics show that in 2019, the output is 146400 tons, and the import volume is 3600 tons (including Calcium tungstate), totaling 150000 tons

In 2019, 5700 tons of APT were produced from waste tungsten, and 3600 tons of ferrotungsten were produced from waste tungsten, which is equivalent to supplementing the consumption of 13300 tons of tungsten concentrate. However, compared to the demand of 183000 tons, there is still a shortage of 20000 tons

In the decade, the annual supply of tungsten concentrate was actually much greater than 150000 tons

Taking 2013 as an example

In 2013, the official statistics showed that the production of tungsten concentrate was 138000 tons. The APT production after deducting waste tungsten production was 98900 tons, and the consumption of tungsten concentrate was 141400 tons. The tungsten iron production after deducting waste tungsten production was 5700 tons, and the consumption of tungsten concentrate was 8300 tons. Adding other consumption, the total output was 150000 tons. Even if importing 9900 tons, there was still a gap of 2100 tons

In fact, the State Reserve Bureau also collected 8000 tons of reserves that year, and Minmetals purchased 30000 tons that year. With the addition of consumption, the actual supply in 2013 exceeded 188000 tons, far exceeding official statistics.

However, due to the lack of new mining and beneficiation capacity after 2017, and the fact that a considerable number of mines have been shrinking in production capacity, such as Jiangtungsten and the original 11 tungsten mines, which have already ceased production for 3-4 companies, the supply volume after 2017 should be relatively stable.

According to calculations, the average annual supply of tungsten concentrate in China after 2017 is 158000 tons, with the increase mainly due to the utilization of waste tungsten

8、 In the 1920s

After 2020, new hard alloy production capacity will continue to enter the market

Taking Ganzhou as an example, in 2020 and 2021, there were 8 additional enterprises with a production capacity of 1820 tons

Existing cemented carbide enterprises with considerable strength, such as Xiamen Tungsten Industry and enterprises affiliated with China Tungsten High tech, are expanding their production capacity. At the same time, some enterprises with outdated technology, production and sales difficulties, and long-term debt will be eliminated

In the early 1920s, due to the impact of the epidemic and inflation, world economic growth slowed down. Many institutions predicted that Europe and the United States would enter a recession in 2023, and Europe was entering a process of de industrialization, which would affect China's domestic manufacturing and infrastructure, significantly affecting the demand for tungsten products

Even in this situation, the APT production in 2021 still reached a historical high of 120600 tons, and the tungsten iron production reached a high of 10600 tons in the past 10 years, indicating the demand for 2021

epilogue

The rapid development of the hard alloy industry has made great contributions to China's modernization construction. The 20th National Congress Report states that building a modern industrial system, adhering to the focus of economic development on the real economy, promoting new industrialization, and accelerating the construction of a manufacturing, quality, aerospace, transportation, network, and digital China.

At the 20th major press conference, the National Development and Reform Commission introduced that China's economy has significantly rebounded, and orders for key projects such as energy equipment, petrochemical equipment, mining machinery, CNC machine tools, and industrial robots in China are all growing significantly, providing rare opportunities for upstream and downstream enterprises. Modern industrialization still cannot do without the hard alloy industry, the realization of a strong manufacturing country, the hard alloy industry, and China's tungsten industry will inevitably play an 

important role.

Therefore, China's tungsten industry will continue to advance, and China's hard alloy industry will continue to develop

With the development of China's tungsten deep processing industry, the tungsten mining and selection industry, as well as the tungsten smelting industry, are also closely following. Due to the increasing demand for raw materials in the tungsten industry, the proportion of waste tungsten utilization will be further increased, and the technology for waste tungsten utilization will also be further improved

The vast number of practitioners in China's tungsten industry will definitely make new contributions to China's promotion of new industrialization and the realization of a manufacturing powerhouse.