TUNGSTEN (Data in metric tons of tungsten content, unless noted) Domestic Production and Use: In 1995, one mine in California produced tungsten concentrate. The mine operated at an annual rate well below capacity. End uses of tungsten included metalworking, mining, and construction machinery and equipment, 77%; electrical and electronic machinery and equipment and transportation, 10%; lamps and lighting, 9%; chemicals, 3%; and other, 1%. The total estimated value of primary tungsten materials consumed in 1995 was $390 million. Salient Statistics--United States: 1991 1992 1993 1994 1995e/ Production, mine shipments W W W W W Imports for consumption, concentrate 7,800 2,500 1,700 3,000 5,500 Exports, concentrate 21 38 63 44 -- Government stockpile shipments, concentrate -- -- -- -- -- Consumption: Reported, concentrate 1/ 5,300 4,300 2/ 2,900 2/ 3,600 7,000 Apparent, all forms 3/ 11,800 7,100 7,100 10,900 15,900 Price, concentrate, dollars per mtu WO3,4/ average: U.S. spot market, Metals Week 61 56 43 45 60 European market 59 58 35 42 83 Stocks, producer and consumer, yearend concentrate 1,800 750 640 800 850 Employment, mine and mill 57 47 33 20 20 Net import reliance5/ as a percent of apparent consumption 91 86 82 81 87 Recycling: During 1995, the quantity of scrap reprocessed into intermediates was about 2,100 tons, representing approximately 13% of apparent consumption of tungsten in all forms. Import Sources (1991-94): China, 38%; Germany, 9%; Bolivia, 8%; Peru, 6%; and other, 39%. Tariff: Item Number Most favored nation (MFN) Non-MFN6/ 12/31/95 12/31/95 Ore and concentrate 2611.00.0000 37.5›/kg W cont. $1.10/kg W cont. Ferrotungsten 7202.80.0000 5.6% ad val. 35.0% ad val. Tungsten powders 8101.10.0000 10.5% ad val. 58.0% ad val. Ammonium tungstate 2841.80.0010 10.0% ad val. 49.5% ad val. Tungsten carbide 2849.90.3000 10.5% ad val. 55.5% ad val. Depletion Allowance: 22% (Domestic), 14% (Foreign). Government Stockpile: The inventory shown below includes the following quantities of nonstockpile-grade tungsten (tons): ore and concentrate, 10,060; ferrotungsten, 533; metal powder, 151; and carbide powder, 51. Stockpile Status--9-30-95 Uncommitted Committed Authorized Disposals Material inventory inventory for disposal Jan.-Sept. 95 Ore and concentrate 34,600 -- -- -- Metal powder 900 -- -- -- Ferrotungsten 900 -- -- -- Carbide powder 900 -- -- -- Events, Trends, and Issues: Apparent consumption of tungsten products increased by about 6% during 1995 compared with that of 1994, as a result of continued growth in the U.S. economy that began in late 1993. Demand for cemented carbide end-use products was particularly strong compared with that of 1994, whereas demand in most other end-use sectors remained at a level near that of the previous year. However, demand for ferrotungsten was substantially lower. Prepared by Earle B. Amey, (703) 648-4969. TUNGSTEN Availability of tungsten materials from China, the major supplier to the world market, became progressively more limited during 1995. China National Minerals and Metals Import and Export Corp. (Minmetals) confirmed the temporary May 1995 closure of 21 mines it controlled, indicating that China was waiting until the international price of tungsten concentrate reached a predetermined level ($70 per metric ton unit of tungsten) before resuming production. China reportedly resumed production on September 10, 1995, with concentrates still priced below the $70 level. For the first time, China showed imports of concentrates, more than 400 tons in 1994 and more than 700 tons of concentrates in 1995. Generalized System of Preferences (GSP) trade status was granted to an additional republic in the former U.S.S.R. Romania received GSP status, effective in March 1995, joining Russia, which was granted this status in October 1993, and Kazakstan and Ukraine in March 1994. Under GSP, imports from Romania will be permitted to enter the United States duty free rather than be assessed the duty that presently exists under Most-favored-nation trade status. Tungsten materials affected by the GSP status include concentrates, ferrotungsten, carbide powder blends, and certain forms of waste and scrap. There were no imports of tungsten materials from Romania, Kazakstan, and Ukraine following their receipt of GSP status. However, appreciable quantities of tungsten materials were imported from Russia during 1995, principally in the form of oxides and concentrates. World Mine Production, Reserves, and Reserve Base: Mine production Reserves7/ Reserve base7/ 1994 1995e/ United States W W 140,000 200,000 Australia -- -- 5,000 130,000 Austria -- -- 10,000 15,000 Bolivia 500 400 53,000 100,000 Brazil 250 100 20,000 20,000 Burma 600 100 15,000 34,000 Canada -- -- 260,000 490,000 China 17,000 10,000 960,000 1,300,000 France -- -- 20,000 20,000 Kazakstan 100 4,000 -- 38,000 Korea, South 200 -- 58,000 77,000 Portugal 200 100 26,000 26,000 Russia 4,000 4,000 250,000 420,000 Tajikistan 100 100 -- 23,000 Thailand 100 100 30,000 30,000 Turkmenistan -- -- -- 10,000 Other countries 3,000 1,000 280,000 370,000 World total (may be rounded) 26,000 20,000 2,100,000 3,300,000 World Resources: More than 90% of the world's estimated tungsten resources are outside the United States, with about 45% in China. In addition to China and the United States, countries with significant resource potential are Australia, Austria, Bolivia, Brazil, Burma, Canada, Kazakstan, North and South Korea, Peru, Portugal, Russia, Spain, Tajikistan, Thailand, Turkey, and Turkmenistan. Substitutes: Cemented tungsten carbide remained a primary cutting-tool insert material because of its versatility in meeting technical requirements in many turning and milling operations. However, ceramics, ceramic-metallic composites, and other materials continued to be developed and utilized as substitutes to meet the changing needs of the world market. Increased quantities of carbide cutting-tool inserts were coated with nitrides, oxides, and carbides to extend the life of the inserts. Tungsten remained the preferred and essentially unsubstitutable material for filaments, electrodes, and contacts in lamp and lighting applications. A new electrodeless, non-tungsten lamp was introduced to the market, however, for commercial and industrial use. e/Estimated. W Withheld to avoid disclosing company proprietary data. 1/Excludes 2 months of withheld data. 2/Excludes 3 months of withheld data. 3/Delay in recording material imported at yearend 1990 believed to have caused significant statistical distortion. Consumption estimated to be about 10,100 metric tons for each year. 4/A metric ton unit (mtu) of tungsten trioxide (WO3) contains 7.93 kilograms of tungsten. 5/Defined as imports - exports + adjustments for Government and industry stock changes. 6/See Appendix B. 7/See Appendix C for definitions. Mineral Commodity Summaries, January 1996