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How might the fact that tungsten prices have more than doubled since early 2005 encourage more producers to locate and extract more tungsten in other nations behind China?
CASE.
Tungsten is a chemical element that has the highest melting point and the greatest tensile strength of all metals. Its corrosion resistance is so strong that it can be attacked only slightly by most mineral acids. Combining tungsten in small quantities with steel creates a very hard metal. All of these attributes make tungsten useful for electrical, heating, and welding applications and as a component in riffle bullets, military armor, and missiles and rockets. The metal also has more mundane uses, including as an input in the production of fluorescent lights, furnaces, and jewelry.
More than 85% of the world's output of tungsten is mined in China. Furthermore, Chinese companies mine tungsten under oversight by the nation's government, which is recent years has taken steps aimed at preventing foreign firms from acquiring rights to join tungsten-mining efforts in the country.
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