Upgrading of consumption structure, China's cemented carbide has more room for growth

In recent years, the overall demand for tungsten in China has been weak, but the market for cemented carbide is relatively large. Affected by the weakening of the macro economy and the replacement of tungsten filament consumption by LEDs, China's tungsten demand has generally been weak in recent years. However, considering the upgrading of consumption structure, the increase of cemented carbide penetration rate, and the substitution of high-end products, China's cemented carbide has a large room for growth.

Cemented carbide is mainly used in cutting tools, mining tools, molds and high-pressure and high-temperature rejection cavities, among which cutting tools and mining tools account for 33% and 25% of cemented carbide applications. At present, China's cutting tool manufacturing industry has both opportunities and challenges, but overall, favorable factors for industry development occupy a dominant position.

The development of domestic mining tools occupies a very important position and role in China's economic construction, technological progress and social development, and belongs to the pillar industry of the national economy. The mining tool manufacturing industry is the foundation for a country to establish an independent industrial system, and it is also an important indicator of a country's industrial strength. In recent years, China's mining industry has developed rapidly. From the perspective of sustained growth, China's geological and mining tool industry still has considerable room for growth. Large-scale railway, highway, mining, and urban reforms will last at least 10 years. During this period, the demand for high-end mining tools will continue to increase. The increase in demand for geological and mining tools will drive the demand for cemented carbide to a large extent. The demand for cemented carbide for geological and mining tools in China has a broad prospect.