Tungsten Emerging as A ‘Critical’ Global Metal

Based on these parameters, tungsten had increasingly emerged as a critical metal, most notably as a result of tungsten limited supply.

Smith noted that China, which produced the majority of the world’s tungsten supply, also accounted for more than half of world demand and was its fastest-growing consumer, which had driven the State to take certain measures to ensure that its own domestic needs were met.

“This has placed an unprecedented threat on the tungsten sector outside of China, which presents enormous opportunities for the development of tungsten ores, concentrates and intermediary products outside of China,” she said.

Moreover, in recent years, demand had outpaced supply, necessitating the sale of stockpiles held by the governments of China, Russia and the US. According to the US Geological Survey, from 2000 until 2011, the US stockpile fell from around 35 500 t to 7 500 t.

“Based on China’s decision to limit exports to the rest of the world, we estimate that the primary tungsten market is in deficit and, this year, we expect the deficit to be in the order of 15 000 t,” cautioned Smith.

In addition, tungsten prices were expected to rise in tandem with increased Chinese input costs, such as labour, as well as rising taxes and high inflation.

 

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