Four Main Barriers of Entry Tungsten Industry

Tungsten industry with decades of development has gradually matured and the market competition is relatively full. However, the current industrial concentration is still low. There are four main barriers for new commers to entering the tungsten industry

Entry rules barrier.

The access conditions for the tungsten products industry are relatively strict. The “Tungsten Industry Access Conditions” issued by the National Development and Reform Commission and the “Tungsten Industry Standard Conditions” issued by the Ministry of Industry and Information Technology. They have very strict rules on the establishment and layout of production enterprises, production scale, resource recycling and utilization. Strict requirements also have been put forward in terms of energy consumption, environmental protection, product quality, safe production and occupational disease prevention, supervision and management; the Ministry of Commerce has established a very strict standard access system for the qualification of tungsten export suppliers as well. If the enterprise is not satisfied with the above conditions. Enterprises will not be able to enter the tungsten products industry or engage in the direct export business of tungsten products.

Product quality barrier. 

As downstream customers pay more attention to the tungsten raw materials, product quality has become one of the main barriers to entry into the tungsten industry. Major manufacturers of high-end hard tungsten alloys at home and abroad have strict requirements for their main raw materials, ultra-fine and ultra-thick tungsten carbide resources. For example, ultra-fine tungsten carbide powders are required to have small particle size, high purity and narrow particle size distribution. Some companies that fail to meet the relevant quality requirements will gradually be eliminated. In addition, downstream customers specially pay attention to the stability of product quality. It is very difficult to survive and develop in the tungsten market for a long time if a company cannot continue to supply with stable quality product.

Technical barrier. 

With the development of China's tungsten technology level, tungsten products are tending to have high performance, high precision and high added value. This trend puts forward higher technical requirements for enterprises entering the tungsten industry. For example, the gradual application of nanomaterials, nanostructure coatings, coating technologies, etc. For tungsten cemented carbide tools, they require for higher technology standards and requirements for the powder morphology, chemical purity, and powder particle size of the main raw material tungsten carbide. New companies entering the industry need to constantly overcome technical barriers.

Talent barrier. 

The tungsten industry has higher requirements for talents in all aspects. In the production process, the production personnel are required to precisely control the key parameters in each process flow. In inspection process, test personnel need to be proficient in the use of professional measuring instruments such as grating spectrograph, laser particle size analyzer and specific surface area analyzer. Therefore, the company is required to have a variety of talents with many years of tungsten industry experience. The demand for talents in the industry is not only the requirement of professional knowledge, but also requires a certain amount of experience. At present, there are fewer professionals in the domestic tungsten industry, and the period of training talents is long. Finding professional talents has become one of the difficulties faced by newcomers.

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