"Golden Decade" of Chinese Cemented Carbide Industry

China's cemented carbide ball and drill has large production capacity and global competitiveness. Its production capacity still has room for expansion. The domestic and international markets have good prospects. In the tungsten industry, tungsten consumption accounts for about the total consumption of tungsten. 50% of the amount. Therefore, the development of the cemented carbide industry plays an important role in the development of the entire tungsten industry. China's cemented carbide industry started from the construction of Zhuzhou Cemented Carbide Factory in the early 1950s. Over the past 50 years, it has developed from scratch and has achieved remarkable achievements. It has become the world's largest cemented carbide producer. However, the overall technical level, especially the production of high value-added products, still has a large gap compared with the world advanced level.

Since the financial crisis in 2008, China's cemented carbide industry has entered a trough, especially in 2015, almost fell to the bottom. But the more difficult it is, the more industry experts have shown confidence. Zhang Zhongjian, president of the China Tungsten Industry Association's hard alloy branch, once said: The industry will be dead. Sure enough, the industry began to recover in 2016 and began to grow explosively in 2017. According to statistics, compared with 2008, cemented carbide production increased by 100% in 2017, sales revenue increased by 75%, profit increased by 136% (2017 profit was the highest in the past 10 years), and export volume increased by 99%.

After the 19th National Congress, socialism with Chinese characteristics entered a new era, and China's economy turned to a stage of high-quality development, which brought huge development opportunities to the cemented carbide industry, mainly in two aspects. First, the high-speed growth of the machining solution industry. First, the development of energy, mineral resources, and cemented carbide for infrastructure construction has grown steadily.

High-speed growth of machining solutions industry

The machining solution is the core product of the cemented carbide industry and is the top priority of the industry. It is faced with automobile manufacturing, CNC machine tools, aerospace, military, mechanical mold processing, 3C industrial processing, marine and marine engineering equipment. And other areas of manufacturing and processing. Zhang Zhongjian said that the industry prospects related to machining solutions in the next 10 years are bright.

Automotive Manufacturing

Dong Yang, vice president of the China Automobile Association, pointed out that the scale of China's automobile production in the next few years may reach 50 million. According to this, only the automotive industry needs a CNC blade of 400-500 million pieces per year.

Mechanical mold manufacturing

China is a major manufacturer and consumer of mechanical molds. In the next 10 years, the total output value of China's mold industry is expected to reach 500 billion yuan.

China Aviation Industry

In the next five years, China's new general-purpose aircraft is expected to be 3,000. Commercial large-scale aircraft will begin mass production, and various types of military aircraft will be replaced by mass production.

The development of the above-mentioned related industries has provided a strong market traction for the rapid growth of China's machining solution industry. Zhang Zhongjian predicts that by 2025, China's machining solutions will increase the annual sales revenue of 17 billion yuan to 35 billion yuan, of which the cemented carbide CNC blade and cutting tool scale is about 30 billion, and the PCB tool is 2.6 billion. . By 2035, China will become a global hub for hard alloy industry, a technology research and development center, and a gathering of talents.

After the rapid development of cutting tool companies in recent years, they will face more severe challenges and market cruel competition. Mainly manifested in:

First, the development trend of the automobile industry to pure electric vehicles is accelerating. Many countries in Europe plan to eliminate steam and diesel vehicles, the new technology of new energy vehicles is changing with each passing day, and the development of superhard tools will reduce the demand for carbide cutting tools. “Perhaps the cemented carbide cutting tool industry has the last 'Golden Decade'.”

Second, foreign high-end brands still firmly control the high-end cutting tool market in China and the world, and simultaneously launched an attack on the “mid-market” in China.

Third, the United States, the European Union, Japan, etc. do not recognize China's market economy status, and Sino-US trade wars may be staged.

Fourth, the industry has seen the low-end production thinking and marketing of high-end products of CNC cutting tools.

Fifth, CNC blade enterprises and enterprises use the industry chain to block.

Carbide and tools for energy and mineral resource exploitation and infrastructure construction have grown steadily.

China is the second largest economy in the world. In 2017, its GDP reached 82.7 trillion yuan, breaking through the 80 trillion yuan mark for the first time. China is both a big manufacturing country and a major consumer of energy consumption and mineral resources.

The mining of energy and mineral resources requires various types of carbide drills. The energy exploitation is mainly oil and gas field mining, shale oil, shale gas mining, hard alloy roller drill, steel body PDC drilling and alloy carcass PDC. Drill. Mineral resources mining, engineering rock drilling, mainly using hard alloy one-bit drill bit, cross drill bit, down-the-hole drill. China's infrastructure is the largest in the world (such as city size, highway mileage, high-speed rail, and urban rail transit mileage are ranked first in the world). Cement construction and maintenance require cemented carbide shield cutters and carbide planing tools.

The current annual production of domestic mining alloys is about 7,000 tons, of which more than 3,000 tons of hard alloy ball teeth. In 2017, China consumed about 11 billion hard alloy tools for various mining and infrastructure. In the next 10 years, with the development of the “Belt and Road”, the people's better life will be improved, energy and mineral resources will be mined, and cemented carbide and tools for infrastructure construction will grow steadily.

Drilling the development of the drilling tool industry, so:

1. China's cemented carbide ball and drill has a large production capacity, and its global competitiveness has advantages. Its production capacity still has room for expansion. The domestic and international markets have good prospects.

2. Drilling and drilling tools are applied to the deep sea (that is, the ocean with a depth of more than 1000 meters), deep ground (referring to mineral resources drilling and mining more than 2,000 meters, oil and gas resources above 5,000 meters), deep space (the space part of the planet has been found Rich in mineral resources and oil and gas resources, such as the millions of tons of helium-3 in the lunar soil, which can release huge energy in the nuclear fusion reaction, the rapid growth of the field, and help the construction of the "transparent earth" technology system and The expansion of the resource space.

3. Technically speaking, composite technology is the development direction of the drilling and drilling industry, such as cemented carbide material gradient structure, non-uniform composite, network structure composite, different component composite, cemented carbide and synthetic diamond composite, PDC Combined with the function of the roller cone bit.

4. The integration of cemented carbide production enterprises and drilling tools enterprises, or interconnection, is a better choice for the industry to fully meet customer needs.

"The new era has arrived. The future of the Chinese cemented carbide industry is faintly visible in the 'Golden Decade'. The pace of China's cemented carbide from the big industrial countries to the strong countries has already begun."