More tungsten alloy and carbide machined products

More tungsten alloy and carbide machined products
What’s the meaning of the new Chinese Central Government’s policy of “Stop Release New Licence of Developing Tungsten and/or Rare Earth Mines”?

According to the reported of CTIA, the Chinese Central Government(CCG) has just announced a new policy of developing tungsten and rare earth mine in 2009-2010, it is reported that none can get the new licence for developing such stagitic nonferrous metals such as tungsten, rare earth from 2009 to 2010. the reason given were envoirement protection, the more and more domestic applications and the out of control of opening and developing of these important materials in the past decades sharp econominc developing.

But, according managers of the majior nonferrous metals company and experts of tungsten and rare earth in China, in fact, the total sum of output and tungsten and rare earth in 2009 maybe less than the plan and total export licence of 2009, the reason is has been down sharply from the last half 0f 2008, some companies who have licences and deal these products in domestic and outside, just exported 20%-50% these commodities inn the first quarter 2009, and there’s no more purchase order for the next quaoter. Then, their views is it may be better in the end of this year, or if the global economic come to better later than it is expected, the market of these nonferrous metals’ prices and output may rise also later than expected by the end of 2009.

Why the CCG announced this new policy at this situation?

I think the reason may 1) CCG would like to let the world know, the cheap markets on the stagitic metals from China will never come in the future; 2) The CCG will control the export of nonferrous metals as W & RE, for there’s a large demand in the domestic, 3) CCG would like show it’s strict policy for the enviorment although all over the world have been in the the large financial crisis, 4) CCG has the weapons itself in the resource “war” in the new century, not the cannon, not the rokets and not the Chinese, but these metals which may controlled by CCG.

The new policy may let more and more Chinese companies who produce and export tungsten ore and/or tungsten intermediate products reduce less it’s production and offer more and more tungsten final products and then, these countries and companies who use the raw materials as tungsten intermediate products as ammonium paratungstate, metatungstate, tungsten acid, tungsten oxide and trioxide to buy tungsten final products and the machined tungsten carbide and alloy parts in the near future.

Then, the new policy just show us a policy was all these companies have to think about the processing and trade stagtic of using tungsten as raw materials.

Hanns CEO/Chinatungten.com