How Tungsten Copper Competes in Global Markets

Introduction to Global Tungsten Copper Material Consumption

In CY 2013 Paumanok Publications, Inc. estimates that approximately four million pounds (avoirdupois weight) of tantalum materials will be consumed in the global market, a low point in both the supply and demand for this unique and important metal. At the point of sale, more than half of the tantalite is converted into engineered powder, while the majority of the remainder is sold as metallurgical products and a small amount is consumed in fine chemicals for laboratory and special industrial usage (according to Paumanok estimates).

Competition Among Industries for Tungsten Copper Metal

Competition for tantalum by industry can be intense because of its narrow supply chain, of the four million pounds consumed in 2013, about 50% of demand will be dictated by the electronics industry; primarily in the form of anode for capacitor and in the form of semiconductor targets which are sputtered to form a diffusion layer for use in the semiconductor manufacturing process. The remaining 50% of tantalum demand comes from industries that are niche and fragmented but collectively quite significant; and include alloy additives, industrial processing, cemented carbides, fine chemicals and some additional specialty product lines.

The Challenging Supply Chain

Over the past 36 months, key hard and soft rock mining operations for tantalite have been either idled or permanently closed in Australia, Canada, Mozambique and Ethiopia; leaving the majority of demand to be satisfied by artisanal sources in South America and Central Africa; from recycled metal or from existing stockpiles throughout the supply chain. This scenario creates a balanced supply chain, only in weak economic conditions, however, any sudden upturn in the global economy, an upturn impacting both the professional electronics markets and the metallurgical end-use segments, would place a strain on the supply chain, and upset the delicate supply/demand balance currently in place. Any supply chain disruption resulting from an increase in demand from an improving global economy would create competition for tantalum among the following end-use market segments.