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THE PRICE COMPOSITION & RISING FACTORS OF TUGNSTEN CHINA, 2017

PART X OF X

An Ongoing Topic：Price Rising Factors of Tungsten

September 11, 2017

In view of the recent rapid rise of tungsten products, China Tungsten online launched an analysis article on the price fluctuation of tungsten products according to its understanding of the tungsten products market and many years of industry experience, and published it on "China Tungsten online" WeChat and China Tungsten online news website to share with you and get your criticism and correction. Today's article is the tenth and last in this series. We hope to make some summary through this article and make some preliminary reflection on the development and characteristics of tungsten products industry in order to resonate.

Batch Arrangement of China Environmental Protection Inspectors

The reason for the rapid rise in the price of tungsten products in a short time is relatively clear and certain because of China's recent environmental supervision.

On August 29, 2017, Xinhua Net reported on the most severe environmental protection supervision and law enforcement in China's recent history under the title "why does this great supervision cover the whole country make local people frightened?". It is reported that from August 15 to 24, the fourth batch of central environmental protection supervision teams stationed in 8 provinces and autonomous regions, and a total of 13826 reports were handed over to the masses; 2115 cases were filed and punished in relevant regions, with a penalty amount of 94.4924 million yuan; 122 cases were filed for investigation and 146 people were detained; 1113 people were interviewed and 1797 were held accountable.

This environmental protection supervision is mainly aimed at ferrous metal smelting and other industries, but it also has a huge impact on the tungsten products industry. Its appearance is the environmental protection war, but in fact, the economic war of industrial upgrading, that is, the environmental protection policy is used to force the industrial upgrading of all walks of life. A large-scale environmental protection inspection has shaken China's tungsten products industry, which is enough to show that many tungsten products production and processing enterprises, especially the raw material end, have not strictly carried out self-discipline in accordance with relevant national environmental protection regulations and failed to meet environmental protection requirements, which at least explains two problems:

(1) Our current price of tungsten products does not fully reflect its due environmental protection cost. Our enterprise has not fulfilled its due obligations as a social citizen, nor has it fulfilled its due social responsibility and social ethics, nor has it passed the ISO14000 environmental management system, nor has it reached the minimum environmental protection regulations stipulated by the state.

(2) Our industry is still in the stage of low-end competition, with low technical content and low added value of tungsten products. At the same time, our tungsten products industry has not formed a good industrial chain and a good and orderly cooperation and competition relationship among enterprises in the industrial chain, so the price is very vulnerable to market factors and environment. Therefore, we need to effectively understand the social responsibilities and legal obligations of the industry, recognize the characteristics and weaknesses of the industry, adjust the production and operation policies and Strategies of the enterprise accordingly, improve quality and efficiency, and refine products according to the current industrial stage of the industry and enterprises.

The huge environmental cost of extensive industrial management in China

In addition to the enterprises in the stage of front-end tungsten concentrate, tungsten oxide and metal powder, the back-end fine processing part of China's current tungsten products industry is mainly divided into:

1) Metal tungsten products, such as tungsten wire, tungsten electrode and tungsten rod

2) Cemented carbide products (3) high specific gravity tungsten alloy, tungsten copper, tungsten silver and other alloys and various standard parts and special-shaped parts. Among them, the cemented carbide is the part with the largest consumption of tungsten raw materials, the highest output value in each year and the largest degree of competition. According to the current business form, history and future development of environmental protection and tungsten products, especially cemented carbide processing industry, we interviewed some professionals in the industry. Among them, Mr. Xu Suochuan, who was nearly 80 years old and worked in Xiamen Jinlu special alloy, which was in the high-end position in China's Cemented Carbide processing field before retirement, has some representative views and ideas, The following is his interview, which is also our reflection on China's tungsten products industry. The appendix is here for readers.