Antimony producers expect higher price

BEIJING (Asian Metal) 2 Feb 09 – Most Chinese antimony ingot producers are not back from the Spring Festival holiday. They expect higher prices for antimony ingot in the following two or three weeks as the market supply seems comparatively tight.
An official from a Hunan-based antimony ingot smelter anticipates that the price of the material might rise to RMB30,000/t (USD4,380/t) ex works before long due to tight availability. "We received a few inquiries before and during the holiday, but we would not like to sell because we predicted the price would go higher," said the source.
According to the source, the smelter, with a capacity of 2,000tpy, stopped production in the second half of last month and planned to resume production after the Lantern Festival. "We have a stock of 200-300t on hand, but we're not going to sell at the moment," said the source, adding that the most recent deal was concluded at around RMB25,500/t (USD3,723/t) ex works VAT excluded late last month.
Another Hunan-based antimony ingot producer also takes a high expectation on the future market. "The antimony market is chaotic now. Producers are talking the price up in the name of tight supply," said the source. According to the source, antimony ingot 99.65%min is being offered in a wide range of RMB26,500-28,000/t (USD3,869-4,088/t) ex works, and some producers quote as high as RMB27,500/t ex works VAT excluded. However, there are few deals concluded for the time being. On the one hand, most producers have not returned to the market; on the other hand, consumers are not ready to accept the high price at RMB27,000-28,000/t (USD3,942-4,088/t) ex works.
"Nevertheless, we have confidence in concluding deals at higher prices given that not only antimony ingot is in tight supply, but antimony concentrate, the raw material is also very hard to obtain," said the source.
The source also expects the antimony ingot price to breach RMB30,000/t (USD4,380/t) ex works before long, but it is too early to predict the market in March and April.
With a capacity of 200tpm, the smelter is also out of production and plans not restart until the Lantern Festival.