[Ferro-Alloys.com]Non-China consumers of tungsten have had some respite from concern regarding Beijing’s dominance of the metal’s production due to the existence of stockpiles, particularly in the United States. But, according to one new producer, Australia’s Carbine Tungsten (ASX:CNQ), “the strategic stockpile in the U.S. is expected to be consumed during 2015 and this should logically lead to further concentrate demand”. But can the mines now in existence meet that demand?

And recall, too, that in 2013 the U.S. Department of Defense issued a report on the country’s stockpile requirements for critical metals. Tungsten was the sixth most urgent priority (after tin, antimony, aluminium oxide, silicon carbide and yttrium). Japan and the European Union also rate tungsten as one of the critical metals for which security of supply is required.

China has played fun and games with tungsten just as it has with rare earths, starting with wrecking the global mining industry of those metals through its dumping program which began more than 25 years ago. As a result, in 2012 China still mined 86% of all the world’s tungsten, consumed 59% of what was mined, and has about 55% of the known global resources. Now Chinese tungsten has the new tax system as applied to REE (rare earth elements), both to get around World Trade Organisation rulings and to maintain control of what leaves the country. The tax on tungsten exports is now 6.5%.

Like rare earths, too, the tungsten industry tends to be vertically integrated: the producers of the finished metal prefer to have close ties with those who mine the ore. What with falling grades and rising prices facing tungsten Chinese miners, and snail-like progress in developing mines outside that country, the world looks facing a tungsten deficit from this year through to at least 2018. However, the price of ammonium paratungstate has faltered, but then so have the prices of many minerals as we move into a commodities secular bear market. One of the few non-China mines developed in recent decades, North American Tungsten’s Cantung operation in Canada’s Northwest Territories, recently had to lay off staff.

If you own a circular saw, that blade will contain tungsten, as do knives, cutters of all types. Its hardness makes it essential for special hard steels and alloys for jet turbine blades and rocket nozzles. Filaments in light bulbs, arch-welding electrodes are among its electrical uses (although new energy-efficient devices will see these applications shrink). Then there is tungsten jewellery if that is your taste: in fact, it is for many Americans with tungsten the metal of choice for 20% of rings now slipped on third fingers at the alter or the marriage registry.

Its main attribute is strength at high temperatures, its melting point being 3,420°C — the highest melting point of all metals. It would need to reach 5,555°C, which is the temperature on the surface of the sun, to make it boil. It occurs in two forms: wolframite and scheelite.

For Western and Japanese customers, it is most important that new mines get up and running outside China in order to overcome any additional export restrictions that might be imposed by Beijing. Japanese interests are already closely associated with two Australian projects.

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• [Editor:Jiang Li Juan ]