China becomes largest consumer of tungsten and vanadium

Steel Home reported that 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% of world's turnout produced 73,000 tonnes molybdenum concentrates ore around 38.5% of world's total, produced 30,000 tonnes vanadium ore that is 32% 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% to 15% tariff on moly chemicals exports. Industry experts predict that China's tungsten output will hit 51,500 tonnes in 2010 up 1.6% YoY. 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 paratung state capacity. This year, APT production will hit 130,000 tonnes up 8.3% YoY.

During the first 4 months of 2010, China imported 8325 tonnes molybdenum down 33% YoY, the export shipments during the same period realized 6251 tonnes increasing 1.8 fold over one year earlier.

Current vanadium capacity in China is around 90,000 tonnes per year, covering around 61% of world's total capacity. In the H1 year, China's vanadium price averaged CNY 99,000 tonnes up 8.8% YoY. On the rise of steel production, vanadium demand will moderately grow up in the second half year. The cost will underpin vanadium price.