China Becomes Biggest Consumer of Tungsten, Moly and Vanadium

BEIJING, July 16 -- With rapid development of steel and ferroalloy industries, China has become the world largest consumer of tungsten, molybdenum and vanadium.

In the year 2009, China produced 50,000 tonnes tungsten concentrates ore, around 80 percent of world's turnout; produced 73,000 tonnes molybdenum concentrates ore, around 38.5 percent of world's total; produced 30,000 tonnes vanadium ore, that is 32 percent of world's total. Keeping a healthy development of tungsten, molybdenum and vanadium industries has great significance for global non-ferrous industry.

Chinese government levies 10-15 percent tariff on moly-chemicals exports.

Industry experts predict that China's tungsten output will hit 51,500 tonnes in 2010, up 1.6 percent year on year. Despite of overcapacity in China's tungsten industry, enterprises continue expanding capacity in a bid to seek for bigger profit.

In 2009, China witnessed an increment of 25,000 tonnes at least in ammonium paratungstate (APT) capacity. This year, APT production will hit 130,000 tonnes, up 8.3 percent year on year.

During the first four months of 2010, China imported 8325 tonnes molybdenum, down 33 percent year on year; the export shipments during the same period realized 6251 tonnes, increasing 1.8 fold over one year earlier.

Current vanadium (V205) capacity in China is around 90,000 tonnes a year, covering around 61 percent of world's total capacity. In the first half year, China's vanadium price averaged CNY 99,000 tonnes, up 8.8 percent year on year. On the rise of steel production, vanadium demand will moderately grow up in the second half year. The cost will underpin vanadium price.