Antimony prices to hold high
2005-03-22 08:43:50 【Print】
BEIJING (Asian Metal) 22 -Mar -2005 - The antimony market still remains quiet, continuing its trend in past weeks since the end of China Lunar New Year, while the prices still stands in a deadlock, with both buyer and seller unwilling to give in. One major antimony product trader in South China reported to Asian Metal that he takes a very positive expectation for the near future market
"Suppliers would not so easily to give up their positions on the price issue. Sooner or later, foreign buyers would be forced to accept current price level . Otherwise, they would have to close their antimony trioxide operations," the trader claimed . Meanwhile, the source acknowledged that in past weeks, European buyers almost stopped purchasing antimony ingot and by the moment, he only exported small quantity to some Asian countries like Japan and South Korea with combined quantity of around 100t for both antimony ingot and trioxide. "We can get a price of over USD3,100/t nearly USD3,150/t Cif Japan for antimony ingot," said the trader.
"We bought antimony ingot at a price of RMB26,000/t, with current prices quoted at RMB26,200/t delivered in ports. It would be difficult for you to get some lower ones than this number now if from Hunan Province. The material in Guangxi could be a little lower at a price of RMB25,700/t ex works, but if with a land transportation charge of RMB100-200/t included, the price would be also around RMB26,000/t. Of course, you can also purchase some from Guangxi at a price of around RMB25,000/t, if you do not mind high bismuth content, as much as around 400ppm," said the trader .
The source exported total 4,000-5,000t antimony products in 2004, including antimony ingot and trioxide.
Meanwhile, the trader also invested to establish an antimony trioxide smelting plant in Dongguan, Guangdong Province three years ago, with a production capacity of 500tpm. "But we now only operate on a 300tpm basis," said the trader . In 2004, it produced total around 3,000t antimony trioxide, nearly half of which were exported.
"We quote RMB24,300/t for our antimony trioxide, because, if we calculate on a RMB26,000 basis for the raw material -- antimony ingot -- the cost price would be RMB23,800/t, and a profit of around RMB500/t should be reasonable," the trader claimed.
Unlike that of antimony ingot, the export price of antimony trioxide rose, from previous a little over USD2,800/t Fob to current around USD2,900/t Fob. "We just sold some at a price of over USD2,900/t Fob," claimed the trader .
As a very professional trading company for antimony products, the trader often keeps a huge stock of as much as 1,000t for combined antimony ingot and trioxide. "Whatever the price is good or bad for us, the figure for stock keeps unchanged in order to keep a reliable supply for our customers," said the trader.
According to the source, presently, Xikuangshan is quoting USD3,000/t Fob CMP for its "Shanxing" brand antimony trioxide.
The trader believes that although the current market price for antimony products has reached 10 years high, primary market fundamentals would certify that the price would continue to rise, only in more slow paces.