Analysis of the Growth Potential of Zhongwu Hi-Tech's Global Market Share in Cemented Carbide

Based on the collected data and research analysis, I now provide you with a systematic analysis report on Zhongwu Hi-Tech’s global market share in cemented carbide.

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Zhongwu Hi-Tech (000657.SZ), as the core platform for the tungsten industry under China Minmetals Corporation, has established a complete tungsten industrial chain integrating mining, smelting, processing, and trading [1]. According to public data, the company’s annual output of cemented carbide exceeded

in 2024, ranking first globally; its output of CNC cutting inserts reached approximately , accounting for about 10% of China’s total output [2]. The company’s products cover including powders, wear-resistant materials, precision parts, cutting tools, and precision instruments, making it the enterprise with the most complete product range in the industry.

Estimation Metric	Market Share	Explanation
Output-based	12.7%	Estimated based on global annual output of approximately 110,000 metric tons
Revenue-based	4.3%	Estimated based on the global cemented carbide tool market size of approximately RMB 195.8 billion

It should be noted that the significant gap between the output-based and revenue-based market share is due to:

[3].

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Enterprise	Country	Annual Revenue (RMB 100 million)	Business Characteristics
Sandvik	Sweden	Approximately 24.6	Cemented carbide tools and total solutions, providing full services from product design to manufacturing and processing
Kennametal	USA	Approximately 12.5	Metal cutting tools, widely used in aerospace, mining, construction and other sectors
IMC Group (ISCAR)	Israel	Approximately 18.0	Metal cutting tools, offering a full range of precision cemented carbide processing tools
Zhongwu Hi-Tech	China	Approximately 8.5	Ranks first globally in cemented carbide output, with a complete range of product categories and specifications

1. Gap in Product Value-Add
   : European and American enterprises account for approximately 60% of the high-end tool market, master core cemented carbide technologies, and offer a complete range of products with stable quality [4]
2. Gap in Service Model
   : International giants can provide total solutions to customers, while domestic enterprises generally have the characteristics of single-product offerings and insufficient understanding of customer needs
3. Gap in Brand Premium
   : The unit price of exported products is significantly lower than that of imported products, reflecting that the international competitiveness of products needs to be improved

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Based on comprehensive analysis, Zhongwu Hi-Tech’s current global market share is approximately

(combining output and revenue metrics). This level stands in stark contrast to the company’s “world’s first” output scale, mainly due to product structure differences and insufficient overseas market development.

Indicator	Current Level	Medium-Term Target	Growth Potential
Global Market Share	5-7%	10-15%	Approximately 5-10 percentage points
Proportion of High-End Products	Approximately 20%	40%	20 percentage points
Proportion of Overseas Revenue	17%	35%	18 percentage points

1. Significantly Improved Resource Guarantee Capability
   :
   • Completed the 100% equity transfer of Shizhuyuan Company in December 2024, significantly improving tungsten resource self-sufficiency [5]
   • Shizhuyuan Company’s net profit in 2024 was RMB 705 million, accounting for approximately 70% of the company’s total net profit
   • The Shizhuyuan technical transformation project is expected to reach full production in 2030, increasing production capacity by approximately 59%

2. Sustained Growth in Market Demand:
   • The global cemented carbide tool market size is expected to grow from USD 27.2 billion in 2024 to USD 37.0 billion in 2030 [6]
   • China’s tungsten consumption reached 70,800 metric tons in 2024, a year-on-year increase of 3.5%
   • Demand for high-end cemented carbide is growing in the new energy vehicle and military industries

3. Vast Space for Domestic Substitution:
   • China’s cemented carbide imports show a downward trend; imports in 2021 were 1,285.8 metric tons, a year-on-year decrease of 12.80%
   • There is strong demand for domestic substitution of high-end cemented carbide tools

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Growth Driver	Specific Measures	Expected Outcome
Mineral Resource Integration	Acquire 99.97% equity of Yuanjing Tungsten Industry	Further improve tungsten resource self-sufficiency
Cost Control	Improve the complete industrial chain of “Resource - Smelting - Processing”	Increase gross profit margin by 2-3 percentage points
Tungsten Price Increase	Tight supply and demand support upward tungsten prices	Boost performance

Growth Driver	Specific Measures	Expected Outcome
Capacity Expansion	Shizhuyuan technical transformation project reaches full production	Increase tungsten ore production capacity by 59%
Product Upgrading	Increase the proportion of high-value-added end products	Increase revenue-based market share by 3-5 percentage points
Overseas Expansion	Intensify efforts to develop international markets	Increase the proportion of overseas revenue to over 30%

• Technological Breakthrough
  : Technologies for high-end CNC cutting tools and precision part molds reach international advanced levels
• Market Share Growth
  : Increase global market share to over 15% and enter the global first tier
• Improved Profitability
  : Continuous improvement in gross profit margin driven by product structure optimization

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Risk Type	Specific Content	Impact Level
Tungsten Price Fluctuation Risk	Tungsten prices may face correction pressure after a rapid upward trend	Medium-High
Demand Shortfall Risk	Weak demand in downstream manufacturing affects cemented carbide sales	Medium
Technological Breakthrough Risk	R&D progress of high-end products may be lower than expected	Medium-High
International Competition Risk	International giants continue to intensify their development of the Chinese market	Medium
Policy Risk	Changes in total volume control policies for tungsten concentrate mining	Low

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1. Scale Advantage in Output-Based Market Share
   : Zhongwu Hi-Tech’s annual cemented carbide output of 14,000 metric tons ranks first globally
2. Huge Growth Potential in Revenue-Based Market Share
   : Current revenue-based market share is only 4-5%, with significant growth potential compared to the 12.7% output-based market share
3. Clear Growth Path
   : Through three key paths of resource integration, product upgrading, and overseas expansion, it is expected that the revenue-based market share can double in the medium term
4. Advantage of Complete Industrial Chain Layout
   : After the injection of Shizhuyuan Mine, the company’s complete industrial chain layout of “Resource - Smelting - Processing” is becoming increasingly improved

Time Node	Output-Based Market Share	Revenue-Based Market Share	Growth Range
Current	12.7%	4.3%	Benchmark
2027	14-15%	6-8%	+2-4 percentage points
2030	15-17%	10-12%	+6-8 percentage points

: The growth potential of Zhongwu Hi-Tech’s global market share in cemented carbide is approximately 5-10 percentage points, with a medium-term target market share of 10-15%.

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[1] Securities Times - Zhongwu Hi-Tech: Improving the Complete Industrial Chain Layout of “Resource - Smelting - Processing” (https://stcn.com/article/detail/3545908.html)

[2] Eastmoney.com - Research Report on Zhongwu Hi-Tech (000657) (https://pdf.dfcfw.com/pdf/H3_AP202504301664948483_1.pdf)

[3] Minsheng Securities - In-Depth Report on Xiamen Tungsten Industry (600549.SH) (https://pdf.dfcfw.com/pdf/H3_AP202205161565849221_1.pdf)

[4] Dongya Qianhai Securities - Report on the Upward Momentum of the Tungsten Industry (https://pdf.dfcfw.com/pdf/H3_AP202209061578078140_1.pdf)

[5] 2025 Semi-Annual Report of Zhongwu Hi-Tech Materials Co., Ltd. (http://static.cninfo.com.cn/finalpage/2025-08-27/1224577056.PDF)

[6] Global Market Insights - Market Size and Growth Opportunities of Solid Carbide Tools (https://www.gminsights.com/zh/industry-analysis/solid-carbide-tools-market)