In 2003 world tungsten supply was dominated by Chinese production and exports. Beginning in 1999 and continuing into 2003, the Chinese Government took several steps to control the release of Chinese tungsten into the world market. In addition to regulating production and the total volume of tungsten exports, the Government was gradually shifting the balance of export quotas towards value added downstream tungsten materials and products. China was also becoming a larger tungsten consumer. During the past decade, the growth in China’s economy has resulted in a significant increase in consumption of tungsten materials to produce finished products for the domestic market, such as cemented carbide tools.

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. Global mine production of tugsten was estimated at 46,200 t in 2003 an increase from 37,100 t in 2002.