Antimony prices hold high

BEIJING (Asian Metal) 4 May 08 – Supported by the high price in European spot market, antimony ingot price keeps firm in China. The tight supply of antimony concentrate is also considered as one of the factors leading to the strong market.
"As Chinese government is enhancing the control of dynamite for safety concern, many small mines were forced to close, and thus the supply of antimony is tightening," a Hunan-based antimony ingot producer said. "Therefore, antimony ingot producers insist on high offers of the material for fear that they cannot get enough raw material for production in the following two months."
The source, who concluded a few deals at RMB38,000-38,100/t (USD5,429-5,443/t) VAT excluded for standard grade-two antimony ingot, is currently offering RMB38,300/t (USD5,471/t) VAT excluded for the material.
The smelter is operating according to antimony concentrate obtained and holds 50-60t of antimony ingot in stock. With an optimistic attitude towards the future market, the source is not hurried to sell at the moment.
Another trader from East China also attributed the firm price of antimony ingot to the short supply of raw material. Additionally, the strong market in Europe also strengthens Chinese producers' confidence about a bullish market.
The source reported that many producers are holding on for higher prices and thus he has difficulty replenishing stocks at a reasonable price. "Some producers quote as high as RMB42,000/t (USD6,000/t) ex works for standard grade-two antimony ingot," said the source who put the mainstream price at RMB41,000-41,300/t (USD5,857-5,900/t) ex works.
Confirming that the raw material supply is getting tighter owing to the control of dynamite, the source predicted that the market would keep at the current high level in the near term.