China tungsten downstream processing development will enhance the corporate value of tungsten

Tungsten is China scarce and irreplaceable strategic resources , we expect to improve industry concentration , mandatory production plans and export policies will effectively control the supply of tungsten , 2013 - 2015 compound annual growth rate of tungsten concentrate production was 2 %. In our opinion, metal cutting tools , and development of oil / shale gas industry will continue to drive growth in the consumption of tungsten ; 2013-2015 China tungsten demand growth of 5% .

High-end equipment manufacturing will push tungsten downstream processing industries. High-end equipment manufacturing was listed as one of the big seven strategic emerging industries China , likely to be the next 5-10 years and the rapid development of the national policy support . According to China Association 2011-2015 tool development goals , domestic and efficient tool from a 15% market share in 2010 to upgrade to 2015 to 30% -40 %, which means to increase domestic demand for space efficient tool 60-100 billion ; expects domestic leading tungsten carbide deep-processing enterprises will usher in development opportunities.

Global leader in the development of carbide cutting tools two inspirations: ( 1 ) continued development of new products will help the company to maintain high gross margins ; ( 2 ) can enhance the company's overseas expansion of market share , maintain its leading position in the industry . We think that the biggest difference between the domestic manufacturers of carbide with overseas business model is that the overall tooling solutions and ability to meet special needs . We believe that with the domestic companies continue to invest in new product development , the development of space tungsten processing industry is broad.


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