Year-end inventory of China's tungsten industry in 2012

Abstract 2012 is about to pass. For China's tungsten industry, it is mixed. Fortunately, the introduction of various export quotas, limited mining, and industry integration has improved the development level of the entire industry. Breakthroughs in various new technologies have effectively improved the profitability of the industry. Exploration aspect...
2012 is about to pass, for China's tungsten industry, mixed, happy, the introduction of various export quotas, limited mining, industry integration and other policies to enhance the development level of the entire industry. Breakthroughs in various new technologies have effectively improved the profitability of the industry. New achievements in exploration and expansion of retained reserves; the worry is that the external environment has deteriorated, the European debt crisis has continued, and exports are difficult to improve in the short term.

In terms of price, this year's price has fallen year on year. In the trend of the tungsten bar market of the Pan-Asian Nonferrous Metals Exchange, it can be roughly divided into three stages. The first stage: from the time of listing to May, it was boosted by the investment of the company's investment in tungsten ore, the price rose from the lowest of 400 yuan / kg to 490 yuan / kg, an increase of 24%; the second stage: from the beginning of June to the end of August, Compressed by the European crisis and the decline of the domestic economic situation, the price dropped from the highest 490.8 yuan / kg all the way to 350 yuan / kg, a drop of -28%; the third stage: from the beginning of September to the present, with the investment in various parts of the country Start, the economy picks up, the price gradually rose from the lowest 350 yuan / kg to 418 yuan / kg, an increase of 19%.

From the price trend and the operation of the real economy, it can be seen that the tungsten industry shows a high correlation with the economic situation. In the case of a gradual start of investment, the machinery and equipment industry is generally the first to be affected. In mechanical equipment, all kinds of processing applications must have tungsten. We believe that this is also related to the characteristics of the rare metal itself. Among non-ferrous metals, the melting point is as high as 3410 ° C, known as "high temperature champion"; the second is extremely high hardness, known as "industrial teeth"; tungsten and its alloys are widely used in the steel industry, equipment manufacturing, information industry , electric power, petrochemical, aerospace and military and many other fields. Specific applications are cutting inserts, mining alloys and wear parts, high speed tool steels, alloy tool steels, die steels, and the like.

Looking at the whole year, although the upper reaches of the tungsten mine have limited integration and other factors, the downstream demand and exports are not prosperous, showing a state of oversupply and directly suppressing prices.

Knowing the new things, we have sorted out the events in the industry in 2012.

1. Implement export quota license management and state-run trade management for tungsten and tungsten products

The Ministry of Commerce and the General Administration of Customs promulgated the "2012 Export License Management Catalogue" and implemented it on January 1. Among them, export quota license management and state-run trade management are applied to tungsten and tungsten products.

The goods subject to export quota license management are: wheat, corn, rice, wheat flour, corn flour, rice flour, cotton, sawn timber, live cattle (for Hong Kong and Macao), live pigs (for Hong Kong and Macao), live chickens (for Hong Kong and Macao), Coal, coke, crude oil, refined oil, rare earth, antimony and antimony products, tungsten and tungsten products, zinc ore, tin and tin products, silver, indium and indium products, molybdenum, phosphate ore. State-owned trade management of corn, rice, coal, crude oil, refined oil, cotton, tantalum and tantalum products, tungsten and tungsten products, and silver.

2, Buffett's investment in Korea's tungsten mine related companies soared

Following March 2011, 80% of Israel’s Isa Metal Processing Company (IMC) announced that it will acquire the operating company of South East Mine on February 28 this year after it announced the acquisition of Japan’s Tailoruo Tool Company for US$1 billion. Wolff Mining has signed an investment agreement of 84 billion won (about $75 million). IMC is the world's second largest producer of tungsten carbide tools, while Tailuo is ranked fifth in the world. This time, the tungsten ore resources can be regarded as an integral investment of Buffett in the upstream and downstream of the tungsten industry.

3, Europe and the United States on the rare earth, tungsten and molybdenum exports proposed trade negotiations

On March 13, the United States, the European Union and Japan resorted to the World Trade Organization dispute settlement mechanism on China's rare earth and other raw material export restrictions. The US, Europe and Japan said that China’s export restrictions on rare earths, tungsten and molybdenum violate WTO rules and China’s accession to the WTO protocol, including export quotas, export licenses and export price limit measures. According to the relevant rules of the WTO dispute settlement mechanism, parties to the dispute need to consult within 60 days to try to eliminate differences. If the consultation fails, the requesting party may request an expert group to be investigated under the WTO dispute settlement mechanism.

4. Minmetals Group and Sweden Sandvik Group signed 

On April 24, China Minmetals Corporation and Sweden's Sandvik Group signed a long-term supply agreement for tungsten raw materials from 2013 to 2015 in China. Zhou Minshu, President of China Minmetals, and President and CEO of Sandvik Group, Faxond Sign the agreement. The agreement is for a three-year rolling period. During this period, China Minmetals will supply Sandvik with 1,500 tons of tungsten oxide and other products worth about US$180 million.

5. Three new materials such as Jiangxi high-purity nano-scale ultra-fine APT new technology have passed the appraisal.

High-performance IC semiconductor punching rod preparation technology undertaken by Jiangxi Shengxian Shirui New Material Co., Ltd. and Zhangzhou Yuanchi New Material Co., Ltd., ultrasonic and microwave hydrothermal synergistic strengthening technology to produce high-purity nano-scale ultra-fine APT new process, carbonization Three new scientific and technological achievements in the production of tungsten and titanium carbide solid solution powder were identified by the results of the organization of Jiangxi Province.

6. The 25th Annual Meeting of the International Tungsten Association was held in Beijing

The meeting announced the overall goal of the development of China's tungsten industry during the “Twelfth Five-Year Plan” period. Control the total amount of tungsten mining, eliminate backward smelting capacity, promote industrial upgrading with technological innovation, comprehensively upgrade the level of technical equipment, and accelerate the transformation of the development mode of the tungsten industry. The first is to improve the capacity of resources. We will do a good job in the recycling and utilization of tungsten resources, improve the comprehensive utilization level of tungsten resources, actively carry out strategic prospecting of tungsten resources, and strengthen the “secondary prospecting” around the existing tungsten mines. The second is to strictly control the total amount. By the end of 2015, the output of the main tungsten ore production will be controlled within 42,000 tons (the amount of tungsten metal), and the export volume of the primary smelting and processing products will be controlled within 30,000 tons (the amount of tungsten metal). The third is to accelerate industrial upgrading. Focus on the development of a variety of crystal forms and ultra-fine ammonium paratungstate, ultra-fine, nano- and ultra-thick tungsten powder and tungsten carbide powder; focus on the development of high-precision, high-performance, high value-added hard alloy deep processing and other high-end products.

In July and October, Jiangxi's protective storage and storage of copper, tungsten and rare earth resources

Jiangxi, a leading province in the domestic tungsten industry, proposed to protect the strategic resources of copper, tungsten and rare earth produced by state-owned enterprises in the province. Jiangxi is a province with a large number of non-ferrous metals resources. There are 33 non-ferrous metals with proven reserves ranking in the top five in the country. Copper, tungsten, rare earth, antimony and uranium are also known as the “five golden flowers” ​​of Jiangxi non-ferrous metals.

8. The State Administration of Work Safety and other 9 departments "Opinions on the work of rectifying metal non-metallic mines according to law"

The opinion decided that from 2012 to 2015, the whole country organized a tough battle for rectification of mines. The target task proposed by the opinion is that by the end of 2015, illegal illegal activities such as unlicensed mining will be effectively stopped, small mines that are not in line with industrial policies and low security support capacity will be rectified and closed according to law, wasteful destruction of mineral resources and serious pollution of the environment will be effective. contain.

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