Environmental crackdown focusing on Lengshuijiang antimony smelters

BEIJING (Asian Metal) 4 Nov 08 - According to market sources, relevant bureaus in Lengshuijiang, Hunan province, one of the most important antimony production bases started a large-scale crackdown on antimony smelters in the area. The checkup, which is expected to last about one week, aims to shut down smelters with the capacity lower than 5,000tpy or not complied with environmental standard among eighty to ninety smelters in the region.

An official from Hsikwangshan Twinkling Star Co., Ltd., the largest antimony trioxide producer in the world welcomed the check up. According to the source, only those smelters who meet the industrial access requirements are qualified to continue producing. The source believes that the check up will help rectify the market order, combat illegal smelting, and protect the profit of state-owned enterprises. Additionally, under the sluggish market, the checkup is likely to stimulate demand and stop the price from falling further.

An antimony ingot smelter based in Anhua, Hunan province learnt the environmental crackdown on antimony smelters in Lengshuijiang. The source also takes it to be a favorable factor for the antimony market which is very slow now. According to the source, the smelter is running regularly with an output of around 300tpm. However, it does not quote for the time being for lack of orders. The source revealed that offers in the spot market have been in decline with some smelters offering a price below RMB38,000/t (USD5,564/t) ex works. Furthermore, quotations made by a few small smelters are lower than RMB33,000/t (USD4,832/t) VAT excluded.