Chinese traders: bismuth market may go up
2006-08-10 11:35:22 【Print】
BEIJING (Asian Metal) 10 Aug 06 - Bismuth market may climb in the coming weeks, Chinese traders make it available to Asian Metal.
"Smelters do not want to quote, because supply of bismuth concentrate is tight, under the influence of the typhoons late July," said an official from a trading company.
Therefore, the source believes that the price of bismuth 99.99%min may increase from RMB83,000/t [USD4.18/lb] to a higher price. The last order the company concluded was at USD4.30/lb, but the company does not quote now. "If we contract new orders, the price will certainly climb higher than USD4.30/lb," said the source.
An official from another trading company agreed that the bismuth market is on an upward trend. One of the two major participants in the European market purchased large quantities of bismuth and the other is making normal purchases, so the price will not be expected to slide, from the point view of these end users, analysed the source.
Besides, Chinese smelters also want to drive the price to go up for more profits. "They now have capital support from other metal businesses, so they can hold on long enough to push the price up," added the source.
Aside from the above factors, the source also points out that the typhoons affecting concentrate supply and possible regulations of export tax rebate will also help push the price up.
Therefore, Chinese traders believe that the market is likely to go up in the coming weeks, despite that current prices of bismuth lie still at RMB83,000-85,000/t [USD4.18-4.29/lb] domestically and USD4.20-4.30/lb for exports.
