Chinese antimony ingot market stable with thin trading
2009-05-19 08:53:33 【Print】
BEIJING (Asian Metal) 19 May 09 – The antimony ingot market is stable in China with thin trading. Producers are reluctant to reduce offers in view of tight supply of raw material and high production cost despite consumers’ unwillingness to purchase at the current price level.
A Hunan-based producer has not sold antimony ingot over the past week. The source reported the slowdown in demand in the local market, but quickly added that producers have no intention of cutting offers to attract buyers given the tight supply of raw material.
“The production all over China is still in a low level due to short of raw material, and most producers do not have much antimony ingot in stock,” said the source. Therefore, the source does not think the antimony ingot price will drop much even if it retreats slightly.
The source is fulfilling a contract signed at RMB30,000/t (USD4,392/t) early this month. The smelter is operating with a monthly output of around 100t. “Currently we would like to sell antimony ingot at RMB29,500/t (USD4,319/t) ex works, but we won’t accept the price below RMB29,000/t (USD4,246/t) ex works,” the source added.
A Guangxi-based producer reported that the antimony ingot price has not changed much, but the market is seeing little activity ongoing. “The market is stagnant,” said the source. “Producers do not want to decrease the price while consumers are not in a hurry to buy.”
The source revealed that the price for antimony ingot 99.65%min in Guangxi is lower than in Hunan, for the former is of high content of bismuth. Nevertheless, most producer, even those who hold stocks on hand, are unwilling to sell the material at prices below RMB29,000/t (USD4,246/t) ex works.
“Due to thin profit margin, many mines halt production or run with a small output for antimony concentrate, so the supply of raw material is tight and the price holds high,” said the source. “Therefore, the production cost for antimony ingot is high. That’s why producers would rather hold stocks than sell the material at lower prices.”
The smelter is running with a small output of 100-200t every month based on its capacity of 600tpm and holds over 200t of antimony ingot in stock. The source revealed to Asian Metal the company sold a few tons of antimony ingot at a price slightly below RMB28,500/t (USD4,173/t) ex works to a regular customer last week in order to collect cash. The source described the price as exceptional and added that the mainstream price is at around RMB29,000/t (USD4,246/t) ex works.
