China Tungsten Carbide industrial upgrading stimulate domestic consumption
At present, our country is the worlds largest producer of cemented carbide, but not the power. 2012, China accounted for more than 38% of the carbide production of world production, but less than 20% of the world GDP, far lower than the overall industry output value ratio. Our carbide carbide products to middle and low-based, high-precision cutting tools, tooling, engineering machinery parts low proportion of high value-added carbide products, Chinas high-end market size of over 2 billion yuan tool, mainly by foreign three giant monopoly: Kennametal, Iscar and Sandvik. Very few companies able to produce, can not meet the domestic manufacturing carbide cutting tools for the growing demand.
Chinese enterprises also have a variety of ways, the development of high-grade carbide products, and increase value-added products. In June, a wholly owned subsidiary of tungsten tech Zhuzhou Cemented Carbide Group Limited and Sandvik in Beijing signed a "letter of intent Project", to be through the establishment of joint ventures, cooperation in the field of cutting tools. Through this partnership, started to engage in high-tech tungsten tool market. Compared with traditional products, high-end tools with very high value-added products. Cooperation with Sandvik is expected to bring technology to upgrade again (once upgrade is also based on cooperation and Sandvik), open market sales of high-end tool for the company and the companys high-end product upgrades strategically important step.
Back in downstream processing tungsten project began in 2011 Xiamen Tungsten gradually achieve results. Currently, the companys overall profit upgrade tools and CNC blade carbide cutting tools, mainly from the release of Jiujiang project capacity. With the gradual Jiujiang project Luoyang carbide cutting tools of production and project commissioning in 2015, Carbide deep processing project is expected to further enhance the companys value.
To promote the upgrading of Chinas carbide industry, higher value added products, the export tax rebate policy adjustment at times in recent years, the export tax rebate rate of carbide cutting tools and other products 5% to 11%, for businesses, there are State support and confidence in their own future will be in the tool business in the international market more competitive. This will export our carbide products play a significant role in promoting.
According to the study reporting agencies shows that the field of tungsten carbide downstream consumption accounted for more than 50%. Therefore, growing and upgrading China carbide industry, will greatly boost the domestic market for tungsten consumption. Tungsten are scarce resources, but also an important strategic materials, is the world as an important strategic metal, long-term value of their investment is worth attention. (Author: Bao - Qing Wang)
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