USD100 reduced for Chinese antimony
2005-04-05 09:14:10 【Print】
BEIJING (Asian Metal) 5 Apr 05 - In the most recent week, the antimony ingot price has sharply declined by around RMB800/t (USD100/t), due to long lasting weak demand from the international market and large accumulated stocks in the China market, major producers confirmed with Asian Metal.
“The price has slipped by some RMB700-800/t, and those small smelters are quoting much lower prices only, a little over RMB24,000/t delivered in ports,” an official from a South China-based smelter told Asian Metal. “But for major players like us, the prices are still over RMB24,500/t delivered in ports.”
The smelter is fully running at its nearly 10,000tpy production capacity for antimony ingot, however, it has less extra cargo available for the spot market, as most of its output is tied to long-term contracts.
The source revealed that the price of antimony trioxide has also softened some RMB1,000/t to RMB22,500/t, but he believes the prevailing prices should be in a range of RMB22,000-22,500/t delivered in ports. Earlier this March, the price level was as high as over RMB23,500/t.
The source believes that the market price may continue to slip in the coming weeks, but could not give an exact number.
"The price of antimony trioxide really dropped down some RMB600-700/t, but we still quote a price of RMB23,000/t delivered in ports," a senior sales manager from another South China-based antimony trioxide smelter told Asian Metal. But according to the source, a price of no lower than RMB22,800/t delivered, should be acceptable.
"Antimony ingot prices have decreased a lot to around RMB23,000/t delivered at our plant. Previously, the price was as high as RMB24,000/t," the source claimed.
The smelter is fully running at its 4,000tpy production capacity, with over 100t of material in stock. "Demand is weakening and people don’t like to place orders in such a slipping market," the source said.
In 2004, the smelter reserved some 1,500t of output for antimony trioxide, with 980t exported and the rest sold in the China market.
The source revealed that the smelter also purchases some antimony ingot from Hunan Province at a price of RMB21,000t with VAT excluded. "RMB21,000/t VAT excluded is a very typical level in Hunan Province for those small smelters," said the source.
Both smelters speculated that the market price for antimony ingot may continue to drop down another RMB1,000/t in the following week.
A small Hunan-based smelter with around 100t of antimony ingot on hand insists that the local market price of 99.65%min antimony ingot is around RMB21,500/t VAT excluded.
A senior executive from a third South China-based smelter said, “The market price decreased some over RMB800/t for our antimony ingot.”
The highest price the smelter concluded was close to RMB26,000/t delivered in ports, but now it quotes only RMB25,200/t. "Of course, RMB25,000/t is acceptable for us. But if a bid is lower than that, we’d have to have a talk in advance. RMB24,500/t is entirely impossible for us to accept, at least at present," said the source.
The smelter takes a very pessimistic attitude on the further market trend.
With a sufficient supply of concentrate supply its own antimony mine, the smelter can well operate on its 4,000tpy production capacity for antimony ingot. For the weak demand from the China market, the smelter still holds one truck (60t stock) waiting for sale.
In 2004, the smelter produced 2,000t antimony ingot.
An official from Xikuangshan Antimony (the giant of the world antimony industry) told Asian Metal that it the company is exporting its antimony trioxide at around USD2,900/t FOB CMP. The source gave a low indication of the current antimony ingot price. "We also buy some antimony ingot from local market to cover our feed. Current prices are around RMB23,000/t delivered to our plant.”
A senior sales manager from a major state-owned smelter (who also has its own antimony mine) told Asian Metal: “The current selling price for our antimony ingot ranges from RMB24,000-24,500/t delivered in ports.”
The smelter has over 10,000tpy production capacity for antimony ingot, but has only been able to run at around 300tpm since the Nandan accident.
