Antimony Metals concentrate supply tight

BEIJING (Asian Metal) 23 Jun 09 – Antimony concentrate supply keeps tight, causing the price of antimony ingot to firm up. Many antimony ingot producers reported that it is difficult to get raw material for production.
A Hunan-based producer bought tens of tons of antimony concentrate grading 50%min at RMB22,200 (USD3,246) per metal ton ex works VAT excluded last week. "But for the long-term relationships with the supplier, we would not buy the material at the above price," said the source, adding that the supplier sold the same material at RMB22,500 (USD3,290) per metal ton ex works VAT excluded to some other buyers. According to the source, the price of antimony concentrate rose by almost RMB1,000 (USD146) per metal ton within two weeks.
The source used to purchase antimony concentrate from Lengshuijiang, Hunan, but many mines in the region halted production due to lack of resources or safety and environmental concerns. The supply of antimony concentrate is tightening the area and many antimony ingot smelters have to search for raw material elsewhere. The source produced around 200t of antimony ingot every month the same period of last year, but now the monthly output is only around 100t due to lack of raw material.
The source currently offers RMB29,000/t (USD4,240/t) ex works VAT excluded for antimony ingot 99.65%min.
Another Hunan-based antimony ingot producer confirmed the tight supply of antimony concentrate. Due to short supply in domestic market, the source has been buying imported antimony concentrate from domestic traders.
"The last batch of antimony concentrate we purchased ten days ago was equivalent to around RMB22,000 (USD3,216) per metal tons delivered, but now the price is higher than RMB22,500 (USD3,290) per metal tons," said the source. "Suppliers told us that the material falls short of supply, so they had to raise offers," said the source.
For lack of raw material, the smelter is also running below its capacity of 3,000tpy. In view of the tight supply of antimony concentrate, the source predicts that the antimony ingot price is likely to go up further from current RMB31,000-31,500/t (USD4,532-4,605/t) ex works.