Analysis and Future Prospects of the National Tungsten Electrode Market

1. Market size and growth trend
Overall scale: China is a major country in terms of global tungsten resource reserves and production. Tungsten electrodes, as a key material in welding, cutting, semiconductor and other fields, have stable market demand.
Growth drivers:
Industrial welding demand: The upgrading of manufacturing industries (such as new energy equipment and aerospace) is driving the demand for high-performance tungsten electrodes (such as cerium tungsten and lanthanum tungsten electrodes).
New energy industry: The production of photovoltaic and lithium battery equipment relies on precision welding of tungsten electrodes, driving sales of high-end products.
Export market: China's tungsten electrodes have high cost-effectiveness and a large share of global exports (mainly to Europe, America, and Southeast Asia).
2. Application field analysis
Main downstream industries:
TIG welding (accounting for about 60%): used for processing stainless steel, aluminum alloys, etc., with stable demand.
Plasma cutting/spraying (accounting for 20%): The demand for industrial equipment maintenance and manufacturing is growing.
Semiconductor/Electronics (Emerging Field): The application of high-purity tungsten electrodes in chip manufacturing is gradually expanding.
Segmented product requirements:
Cerium tungsten electrode (WCe): High cost-effectiveness, occupying the mainstream market.
Lanthanum tungsten electrode (WLa) and thorium tungsten electrode (WTh): High performance demand is increasing, but thorium tungsten is limited by radioactivity.
3. Competitive landscape
Main manufacturers:
Top enterprises: Xiamen Honglu, Zigong Hard Alloy, Zhangyuan Tungsten Industry, etc., with mature technology and strong export capabilities.
Small and medium-sized enterprises: concentrated in the low-end market, with fierce price competition.
Foreign brands: such as Toshiba from Japan and Diamond Ground Products from the United States (which dominate the high-end market).
Regional distribution: Industrial chains are concentrated in tungsten rich areas such as Jiangxi, Hunan, and Fujian.
4. Policy and External Environmental Impact
Supply side: China's implementation of total mining control on tungsten resources may affect fluctuations in raw material prices.
Environmental policy: Eliminate radioactive thorium tungsten electrodes (such as EU RoHS restrictions) and promote the substitution of environmentally friendly products (such as lanthanum tungsten).
International trade: The imposition of tariffs by Europe and the United States on Chinese tungsten products (such as the US Section 301) may affect export profits.
5. Challenges and Opportunities
Challenge:
Fluctuations in raw material prices (tungsten concentrate prices are affected by international supply and demand).
The overcapacity in the low-end market has led to a decline in profit margins.
opportunity:
The demand for high-purity tungsten electrodes is increasing in high-end fields such as semiconductors and nuclear power.
The upgrading of domestic manufacturing technology (such as automated welding) promotes the high-end of products.
6. Future outlook (2024-2026)
Expected growth rate: The compound annual growth rate (CAGR) is about 5% -8%, with even faster growth in the high-end market (10%+).
Key Trends:
Product upgrade: Innovative products such as nano coated tungsten electrodes and ultra-fine diameter electrodes have emerged.
Green transformation: Environmentally friendly electrodes replace traditional thorium containing products.
Regional expansion: Emerging markets such as Southeast Asia and the Middle East have great export potential.