Antimony traders in a dilemma
2005-03-16 09:22:46 【Print】
BEIJING (Asian Metal) 16 -Mar -2005 Different from that in past years, current antimony market is really quiet, with few deals concluded, although most of suppliers are quoting higher prices and buyers from both domestic and foreign market are feeling that it is too difficult to get some materials on so-called reasonable prices.
"In fact, no business was concluded in past weeks as I know. In view of the high domestic market prices, traders would have to quote a price of over USD3,200/t Cif Rotterdam, while foreign buyers absolutely refused to accept," an experienced antimony trader in South China told Asian Metal.
Since the end of the Lunar New Year, Chinese antimony suppliers greatly raised their offers, with some ones as high as RMB26,000/t for antimony ingot delivered in ports or buyers' destinations, at least RMB2,000/t (USD250/t) up compared with that of concluded deals before the Lunar New Year holiday.
Of course, the current price of concluded ones for domestic exchange is not so high, but it varies greatly from RMB24,700/t to RMB25,800/t, as reported by major industry participants.
"I believe the prevailing prices over the market should be around rmb25,000/t, which might be agreed by both seller and buyer," commented the trader. "If calculated on this level, traders' cost would be around USD3030/t delivered in ports, the Chinese departure ports, so we would have to add our profit to it, around USD50/t, and an ocean freight of about USD75/t is also inevitable. Now you can see, we should try to secure a price of at least USD3150/t Cif Europe in order to cover all of these cost."
However, according to trader sources, foreign buyers refuse to accept so high prices. They think it is unreasonable. The price should not be so high. Most of them tend to believe that some majors of the industry manipulate the market and hence fear of potential huge risks in case of a abrupt stock close out.
"It is said that, lead by Minmetals China, a group of major players are trying to dominate the market. As soon as some output comes out, it is immediately purchased by some trading companies," another South China based trader said. "Many others are speculating how much on earth does Minmetals China stock antimony, but no answer."
"There are rumors hovering over the market that Minmetals Chna holds at least 4,000t antimony ingot in stock. If it is, it would be a huge bomb, which could explode anytime," an antimony trioxide smelter in South China revealed. The smelter has 3,000tpy production capacity for antimony trioxide.
Industry insiders think that the market could be clearer at the end of this month or earlier next month, when at least one side of the two parties would have to give in.
