178 TUNGSTEN (Data in metric tons of tungsten content unless otherwise noted) Domestic Production and Use: The last reported U.S. production of tungsten concentrates was in 1994. In 2006, approximately nine companies in the United States processed tungsten concentrates, ammonium paratungstate, tungsten oxide, and/or scrap to make tungsten powder, tungsten carbide powder, and/or tungsten chemicals. Approximately 65 industrial consumers were surveyed on a monthly or annual basis. Data reported by these consumers indicate that more than one-half of the tungsten consumed in the United States was used in cemented carbide parts for cutting and wear-resistant materials primarily in the metalworking, mining, oil- and gas-drilling, and construction industries. The remaining tungsten was consumed to make tungsten heavy alloys for applications requiring high density; electrodes, filaments, wires, and other components for electrical, electronic, heating, lighting, and welding applications; steels, superalloys, and wear-resistant alloys; and chemicals for various applications. The estimated value of apparent consumption in 2006 was $470 million. Salient Statistics—United States: 2002 2003 2004 2005 2006e Production: Mine — — — — — Secondary 4,380 4,130 4,000 4,640 4,500 Imports for consumption: Concentrate 4,090 4,690 2,310 2,080 2,100 Other forms 6,510 7,620 8,240 9,070 10,200 Exports: Concentrate 94 20 43 52 190 Other forms 3,220 5,070 3,730 5,890 7,100 Government stockpile shipments: Concentrate 1,140 710 979 2,310 3,500 Other forms 177 182 80 404 16 Consumption: Reported, concentrate W W W W W Apparent,1 all forms 11,900 10,100 12,600 11,600 13,200 Price, concentrate, dollars per mtu WO3,2 average: U.S. spot market, Platts Metals Week 55 50 49 146 205 European market, Metal Bulletin 38 45 55 123 165 Stocks, industry, yearend: Concentrate W W W W W Other forms 1,610 1,820 1,780 2,300 2,100 Net import reliance3 as a percentage of apparent consumption 69 63 73 68 66 Recycling: In 2006, the tungsten contained in scrap consumed by processors and end users represented approximately 34% of apparent consumption of tungsten in all forms. Import Sources (2002-05): Tungsten contained in ores and concentrates, intermediate and primary products, wrought and unwrought tungsten, and waste and scrap: China, 42%; Canada, 21%; Germany, 8%; Portugal, 5%; and other, 24%. Tariff: Item Number Normal Trade Relations4 12-31-06 Ore 2611.00.3000 Free. Concentrate 2611.00.6000 Free.5 Ferrotungsten 7202.80.0000 5.6% ad val. Tungsten powders 8101.10.0000 7.0% ad val. Ammonium tungstate 2841.80.0010 5.5% ad val. Tungsten carbide 2849.90.3000 5.5% ad val. Tungsten oxide 2825.90.3000 5.5% ad val. Depletion Allowance: 22% (Domestic), 14% (Foreign). Government Stockpile: Sales of National Defense Stockpile tungsten began in 1999. Included in the data listed in the following table, as of September 30, 2006, are 4,690 tons of tungsten contained in uncommitted nonstockpile-grade ores and concentrates authorized for disposal. Prepared by Kim B. Shedd [(703) 648-4974, [email protected], fax: (703) 648-7757]179 TUNGSTEN Stockpile Status—9-30-066 Uncommitted Committed Authorized Disposal plan Disposals Material inventory inventory for disposal FY 2006 FY 2006 Ferrotungsten ― ― ― 7136 133 Metal powder 266 ― 266 7136 ― Ores and concentrates 22,500 252 22,500 73,630 3,630 Events, Trends, and Issues: World tungsten supply was dominated by Chinese production and exports. China’s Government restricted the amounts of tungsten that could be produced and exported, continued to shift the balance of export quotas towards value-added downstream tungsten materials and products, eliminated export tax rebates on all tungsten materials, and imposed export duties on ferrotungsten and tungsten scrap. The growth in China’s economy during the past decade has resulted in China becoming the world’s largest tungsten consumer. Tungsten prices remained high as a result of inadequate supplies of tungsten concentrates within China combined with increased demand for tungsten materials in China and elsewhere. To meet its needs for tungsten raw materials, China imported higher amounts of tungsten concentrates and scrap. The sole Canadian producer of tungsten concentrates signed a memorandum of understanding with a U.S. company to form a joint venture to build a processing plant in Minnesota that would use new technology to produce sodium tungstate, ammonium paratungstate, and tungsten metal powder. Tungsten concentrate production began in Peru, and various companies worked towards developing tungsten deposits or reopening inactive tungsten mines in Australia, Canada, China, Spain, Thailand, the United States, Uzbekistan, and Vietnam. Health, safety, and environmental issues are becoming increasingly significant to the production and use of metals such as tungsten. World Mine Production, Reserves, and Reserve Base: Reserves and reserve base estimates for Portugal were revised downward based on new information from that country. Mine production Reserves8 Reserve base8 2005 2006e United States — — 140,000 200,000 Austria 1,350 1,350 10,000 15,000 Bolivia 520 530 53,000 100,000 Canada 700 2,500 260,000 490,000 China 61,000 62,000 1,800,000 4,200,000 Korea, North 600 600 NA 35,000 Portugal 820 900 2,600 7,500 Russia 4,400 4,500 250,000 420,000 Other countries 710 950 350,000 700,000 World total (rounded) 70,100 73,300 2,900,000 6,200,000 World Resources: World tungsten resources are geographically widespread. China ranks number one in the world in terms of tungsten resources and reserves and has some of the largest deposits. Canada, Kazakhstan, Russia, and the United States also have significant tungsten resources. Substitutes: Potential substitutes include cemented carbides based on molybdenum carbide and titanium carbide, ceramics, ceramic-metallic composites (cermets), diamond tools, and tool steels for cemented tungsten carbides; molybdenum for certain tungsten mill products; molybdenum steels for tungsten steels; lighting based on carbon nanotube filaments, induction technology, and light-emitting diodes (LEDs) for lighting based on tungsten electrodes or filaments; depleted uranium for tungsten alloys or unalloyed tungsten in weights and counterweights; and