Tungsten: a strategic metal

An essential industrial metal with outstanding properties:

KEY APPLICATIONS

  • Highest tensile strength and melting point (3,400°C) of all metals
  • Very high density and second strongest material after diamond
  • A strategic commodity: Critical for many industries including drilling, automotive, military and aerospace
  • Cemented carbides used in drilling tools and wear-resistant parts (55%)
  • Alloy steels and alloys used primarily in tools (21%)
  • Fabricated tungsten products e.g. electrical & electronic contacts (18%)
  • Chemical applications and products (6%)

An essential industrial metal with outstanding properties:

  • Highest tensile strength and melting point (3,400°C) of all metals
  • Very high density and second strongest material after diamond
  • A strategic commodity: Critical for many industries including drilling, automotive, military and aerospace

KEY APPLICATIONS

  • Cemented carbides used in drilling tools and wear-resistant parts (55%)
  • Alloy steels and alloys used primarily in tools (21%)
  • Fabricated tungsten products e.g. electrical & electronic contacts (18%)
  • Chemical applications and products (6%)

EUROPEAN END-USERS ARE SEEKING SECURITY OF SUPPLY OUTSIDE CHINA

CHINA DOMINATES THE TUNGSTEN MARKET

  • Tungsten is a highly strategic metal used in military, aerospace and other heavy industry
  • Rated #1 critical raw material for Europe by EU
  • These dynamics point to potential favourable terms for long term supply contracts
  • China accounts for >80% of global tungsten mine production
  • Recently confirmed it had become a net importer of tungsten from global markets

Limited Large Scale Supply: only 2 mines exist outside of China with production capacity greater than 3,000tpa tungsten in concentrate.

TUNGSTEN MARKET AND PRICING:

  • Tungsten concentrate (containing WO3) is refined by processors into Ammonium Para Tungstate (APT)
  • APT prices quoted in metric tonne units or mtu of WO3 (1 mtu = 10kg)
  • APT price in Aug 2017 ~US$269 per mtu  
  • Total market estimated at 80,000t primary tungsten metal (W), equivalent to ~100,000t tungsten trioxide (WO3)

EUROPEAN END-USERS ARE SEEKING SECURITY OF SUPPLY OUTSIDE CHINA

  • Tungsten is a highly strategic metal used in military, aerospace and other heavy industry
  • Rated #1 critical raw material for Europe by EU
  • These dynamics point to potential favourable terms for long term supply contracts

CHINA DOMINATES THE TUNGSTEN MARKET

  • China accounts for >80% of global tungsten mine production
  • Recently confirmed it had become a net importer of tungsten from global markets

Limited Large Scale Supply: only 2 mines exist outside of China with production capacity greater than 3,000tpa tungsten in concentrate.

TUNGSTEN MARKET AND PRICING:

  • Tungsten concentrate (containing WO3) is refined by processors into Ammonium Para Tungstate (APT)
  • APT prices quoted in metric tonne units or mtu of WO3 (1 mtu = 10kg)
  • APT price in June 2017 ~US$220 per mtu (or US$22,000 per tonne)
  • Total market estimated at 80,000t primary tungsten metal (W), equivalent to ~100,000t tungsten trioxide (WO3)