Antimony ingots,antimony trioxide holds firm on tight supply

Antimony prices held firm on Friday as supply in Europe remained tight and Chinese suppliers maintained their high offers.

Trioxide-grade metal is trading at $6,275-6,475 per tonne and standard grade II metal is trading at $6,250-6,450 per tonne.

Prices surged in the first half of the week following a fatal accident and the subsequent suspension of all mining activity at Hsikwangshan Twinkling Star, the world's largest producer of the minor metal.

"Since the [MB] prices went up on Wednesday, I have had a lot of demand. I have had calls from Chinese people, from consumers, from European traders," one trader said. "The consumers have not stopped bidding me all week."

Business was reported in the second half of the week between $4,300 and $4,500 per tonne, with traders reporting tight supply in Rotterdam.

Offers out of China have been as high as $7,000 per tonne this week, although most material is offered at around $6,500 per tonne.

No material is expected to arrive in warehouses from China for another three to four weeks, market participants said, adding that they are expecting the mine suspension at Twinkling Star to continue for the next month at least.

"The mine will not be reopening for a month, and it could be three months before they reopen fully," the first trader said.

A second trader agreed that demand has been good this week, but forecast little upside in antimony from this week's levels.

"I have heard some ridiculous numbers this week above $6,500, but fundamentally I still see the trade as comfortable at the highs… Yesterday, there was very heavy trading, there was a lot of volume sold," the second trader said.

With demand from cable manufacturers set to decline as the northern hemisphere winter draws in, prices are unlikely to gain more ground, consumers and traders said.

"I don't see us getting much beyond the 2008 high," the second trader said.

Trioxide-grade antimony peaked at $6,850 per tonne in September last year, an all-time high for the metal. Prices then fell back to $4,200-4,400 per tonne by the end of 2008 as slowing industrial activity hampered demand.