Antimony prices soften in China market

BEIJING (Asian Metal) 4 Apr 05 - Large quantity of Chinese antimony ingots are usually sold to foreign markets, but since the end of Spring Festival, Chinese traders and smelters who hold export licenses are said to have united to raise the export price from USD3,000/t to 3,200/t CIF Rotterdam. Whereas, unlike those in tungsten industry, buyers in antimony industry have kept resisting the high market prices in past six weeks, when the market was unusually quiet.Asian Metal Copyright The smelter started to keep the stock before Spring Festival, when lots of industry participants predicted higher prices after the Spring Festival.Asian Metal Copyright Consequently, huge amount of antimony ingots are accumulated in China market.Asian Metal Copyright We have hold the stock more than one month," said the source.Asian Metal Copyright

It seems that now, market participants are finding the deadlock has lasted too long time to be bearable and they have almost used up their cash. People who held stocks in past weeks are being forced to cash in on their stock.

"Market prices have never been so high as over RMB25,000/t as sources reported since the end of Spring Festival. It is those traders holding licenses who are trying to manipulate the market," said an official of a Hunan Province-based antimony smelter, "At least, it is an impossible high level for us to reach.Asian Metal CopyrightIt seems that now, market participants are finding the deadlock has lasted too long time to be bearable and they have almost used up their cash.Asian Metal Copyright"

The smelter is holding 110t antimony ingot 99.9%min waiting for sale. "We are quite willing to sell on a price of RMB21,500/t ex works with VAT excluded, but it is difficult for us to get the price," said the source, "The price is equivalent to RMB22,500/t delivered in ports, with VAT and land transportation included.Asian Metal CopyrightBEIJING Asian Metal 4 Apr 05 - Large quantity of Chinese antimony ingots are usually sold to foreign markets, but since the end of Spring Festival, Chinese traders and smelters who hold export licenses are said to have united to raise the export price from USD3,000t to 3,200t CIF Rotterdam.Asian Metal Copyright

The smelter started to keep the stock before Spring Festival, when lots of industry participants predicted higher prices after the Spring Festival. However, the price began to soften since mid of this Mar as foreign buyers kept standing out of the market, while China antimony smelters can not consume so large stocks. "The best price we heard of was RMB23,000/t ex works concluded in the first of half of this March in local market," said the source. Local market prices slid to RMB22,500/t a week ago, and then to around RMB22,000/t at present.Asian Metal Copyright59%min and has relatively high bismuth content, according to the source.Asian Metal Copyright

Located in Lengshuijiang region and very close to Xikuangshan Antimony, the smelter only produces tens of ton antimony after Spring Festival for the weak demand. According to the source, usually, the price gap between antimony 99.Asian Metal CopyrightBEIJING Asian Metal 4 Apr 05 - Large quantity of Chinese antimony ingots are usually sold to foreign markets, but since the end of Spring Festival, Chinese traders and smelters who hold export licenses are said to have united to raise the export price from USD3,000t to 3,200t CIF Rotterdam.Asian Metal Copyright9%min and 99.65%min is around RMB300/t.Asian Metal Copyright Consequently, huge amount of antimony ingots are accumulated in China market.Asian Metal Copyright

"Our position is very hard. To us RMB21,500/t is a cost price, calculated on current antimony conc prices of as high as RMB17,000/t, grading 50%, (the calculating formula for the actual price is 17,000x50%) some RMB500/t up compared with before the Spring Festival," said the source.Asian Metal Copyright Local market prices slid to RMB22,500t a week ago, and then to around RMB22,000t at present.Asian Metal Copyright

The smelter produced totally 1,200t antimony ingot in 2004.

"We have 150t antimony ingot available in stock with a quoted price of RMB21,000/t VAT excluded," an official from a Guangdong Province-based antimony smelter told Asian Metal, adding that if an invoice was required, the price would be RMB22,000/t.

But the material is not 99.65%min but 99.Asian Metal CopyrightBEIJING Asian Metal 4 Apr 05 - Large quantity of Chinese antimony ingots are usually sold to foreign markets, but since the end of Spring Festival, Chinese traders and smelters who hold export licenses are said to have united to raise the export price from USD3,000t to 3,200t CIF Rotterdam.Asian Metal Copyright59%min and has relatively high bismuth content, according to the source.Asian Metal Copyright"The smelter is holding 110t antimony ingot 99.Asian Metal Copyright

For the 150t antimony ingot stock limited its cash flow, as well as the weak market demand, the smelter did not recover production since Spring Festival.

"The price is far less than those reported by some sources. We have hold the stock more than one month," said the source.Asian Metal Copyright People who held stocks in past weeks are being forced to cash in on their stock.Asian Metal Copyright

The source claimed that the market price is softening.