Industry Overview - Tungsten carbide (WC) is a compound made of tungsten and carbon, known for its high hardness, high melting point, and excellent conductivity, making it essential in various industrial applications [1][2][10] - The production of tungsten carbide in China is projected to remain above 60,000 tons from 2022 to 2024, with an estimated production of approximately 68,000 tons in 2024, reflecting a year-on-year increase of 2000 tons [10][12] Market Dynamics - The demand for tungsten carbide has been positively influenced by the continuous development of downstream industries, with China being the largest producer and exporter of tungsten products [1][12] - In 2024, China's tungsten carbide exports are expected to be 4,146.8 tons, generating an export value of 17,934.1 million USD, although there has been a decline in export volume in early 2025 due to new export controls [12][13] Policy Support - The Chinese government has recognized tungsten as a strategic resource, implementing policies to support the deep processing of tungsten, including plans for significant tungsten smelting projects and the development of tungsten-based new materials [6][8][24] - Recent government initiatives aim to enhance the tungsten industry chain, focusing on exploration, mining, and deep processing to create a complete industrial chain [8][24] Industry Chain - The tungsten carbide production chain includes upstream raw materials such as tungsten concentrate and graphite, with the midstream focusing on the production of tungsten carbide, and the downstream applications spanning aerospace, defense, and high-end manufacturing [16][18][20] - The production of tungsten concentrate in China is projected to reach 130,500 tons in 2024, marking a year-on-year increase of 1.95% [18] Application Areas - Tungsten carbide is widely used in defense and aerospace for manufacturing high-performance military equipment, as well as in high-end manufacturing for precision tools and components [24][25] - The material is also utilized in the semiconductor industry and renewable energy sectors, showcasing its versatility and importance in modern technology [24][25] Future Trends - The demand for tungsten carbide is expected to continue growing as downstream applications expand, with increasing performance requirements driving technological advancements in production [25] - Environmental policies are pushing for greener production methods in the tungsten carbide industry, aligning with national goals for sustainable development [25]