Why Can't Tungsten Bring Great Profit for China?

China is a large producer of tungsten, and tungsten reserves accounted for about 70 percent of the world's total reserves and the tungsten output accounts for 80% of world production.

Tungsten has the highest melting point  of all metals. It is known as the "Industrial teeth" and "industrial salt". Tungsten is widely used in the defense industry, aerospace, machinery manufacturing, oil drilling, special steel, new materials, including satellites, launch vehicles and spacecraft are also inseparable from the composition of the tungsten alloy.

As an important strategic resource, tungsten plays an important role in the national economic and national security. In tanks, tungsten alloy is used to make bombs, also used as a composite armor component to improve the thermal strength and temperature capabilities. Tungsten is applied for a variety of high-speed ammunition, especially armor-piercing and tungsten almost is the only option for high-speed armor-piercing bomb core material.

Later, the United States developed depleted uranium (uranium 238) to replace tungsten as armor-piercing material. But it has been criticized by environmental issues. In World War II, due to be cut off from the channels of the Chinese imports of tungsten ore, the Nazi German tanks is seriously lack of big-power tungsten penetrators, including Tiger tanks and other weapons are greatly reduced firepower.

Although China has the world's largest tungsten reserve, Due to the bad skill of excavating tungsten, China has wasted a lot of tungsten. In addition, lots of tungsten is exported for profit. So domestic turnstile has been exhausted and the wolframite resources are reducing quickly.

At present, China's tungsten reserve, production, trade and consumption volume rank first in the world. However, the rank in the world didn’t just bring pride. The import price is seven times of export price. In 2003, China exported 26,000 tons of semi-finished products of tungsten, with exports of $ 220 million accounted for 2/3 of the total exports of primary products. During the same period, China's exports bulb 6.6 billion, spent about 230 tons of tungsten, exports $ 200 million.

In the same year, the price of per ton tungsten imported is more than 199,000 US dollars, while the export price is $ 28,000, only 1/7 of the import price. China exported 2943 tons of tungsten products to the United States, accounting for 1/3 of the U.S. tungsten supply and exports of $ 25.6 million. In the same period, the sales revenue of the United States Kennametal reached $ 2 billion in the processing of tungsten carbide products imported. China's tungsten industry sales revenue is 10 billion yuan. Export-oriented primary product is the Achilles heel of many industries in China's foreign trade. Valuable resource is depleting, but tungsten didn’t bring lots of profit for China.


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