Tungsten Ore Market Demand – Hard Alloy Analysis
Looking at the global end-use demand breakdown for tungsten, transportation, mining/rock processing, and industrial applications are the three main end-use areas for tungsten, accounting for 26%, 16%, and 13% of applications in 2023, respectively, with the three combined accounting for over 50%. Tungsten’s application in these three areas primarily involves various tools, cutting tools, drills, and wear-resistant components made from cemented carbide. Therefore, the foundation of tungsten demand lies in the demand for cemented carbide.
Cutting tools account for nearly half of the downstream demand for cemented carbide. In 2023, the downstream demand structure for cemented carbide mainly included cutting tool alloys (51.60%), wear-resistant tool alloys (23.91%), mining tool alloys (21%), and others (3%). Cemented carbide possesses excellent properties such as high hardness, high strength and toughness, heat resistance, corrosion resistance, and wear resistance, and is therefore widely used as a tool material for making milling cutters, turning tools, etc., which can be used for cutting non-ferrous metals, glass, cast iron, stone, steel, etc.
The cemented carbide market is experiencing steady growth, with a projected global CAGR of 3.5% from 2024 to 2029. According to data disclosed by the China Tungsten Association, my country’s cemented carbide production in 2024 was 58,000 tons, a year-on-year increase of 6.42%. According to Mordor Intelligence’s forecast, as the manufacturing industry gradually recovers from the impact of the pandemic, the global cemented carbide market size is expected to grow steadily, with a CAGR of 3.5% from 2024 to 2029. Assuming that the growth rate of domestic cemented carbide production remains consistent with the global growth rate, my country’s cemented carbide production is expected to reach 60,000 tons in 2025.
Over 50% of tungsten demand is in cemented carbide, and over 50% of cemented carbide demand is in cutting tools (cutting tool alloys). Therefore, we need to observe the overall trend of tungsten demand through the demand for cutting tools. Cutting tools are consumables in mechanical processing and are core tools used for cutting in mechanical manufacturing, mostly installed on machine tools for metal cutting operations. Machine tools, as general-purpose equipment, are located upstream in the manufacturing industry and are a typical cyclical industry. The core driving force for industry growth comes from capital expenditures in downstream manufacturing industries. Therefore, indicators such as the manufacturing PMI and completed fixed asset investment in the manufacturing sector, which fully reflect the health of the manufacturing industry, are also excellent indicators of changes in tungsten demand.
