London 21 October 2009 14:49
Antimony prices were stable on Wednesday as European consumers and traders mostly stayed out of the tight market.
Trioxide-grade antimony is trading at $6,275-6,475 per tonne and standard-grade II antimony is trading at $6,250-6,450 per tonne.
Little business was reported on Wednesday, with traders and consumers both reluctant to accept Chinese offers as high as $6,700 per tonne.
"In Europe, the prices are too high and people don't want to buy anything. At these levels, I think they are boycotting the market," one Chinese trader said.
"I don't have any transactions to report, they are not accepting offers even above $6,400 – I think they will only accept $6,350 or below," he said.
The only businesses reported on Wednesday were for small tonnages booked at the top end of the MB ranges.
Prices have soared since the fatal accident and subsequent suspension of mining activity at Hsikwangshan Twinkling Star, the world's largest antimony producer, on October 8.
Mining at Twinkling Star will not restart for another three weeks at the earliest and mine shutdowns have been reported across Hunan province's deep level antimony mines, sources said on Wednesday.
"I don't think Twinkling Star will be open for another month or so," one European trader said, reporting sales at $6,450 for standard grade II metal.
Despite the rising Chinese offers and the tightening domestic market, European traders and consumers are not desperate for material.
End-users are anticipating lower demand for antimony trioxide as the winter in the northern hemisphere draws in, and traders are limiting their shipments into Europe because of the limited consumer interest, they said.
"The whole situation is stupid – the Chinese are trying to create panic and the prices are ridiculous – the season [for strong buying] is over," one consumer said.
"There's no real demand and I am not going to buy for a while," he told MB, noting that offers have fallen to $6,450 per tonne in Europe already from highs of $7,000 per tonne a week ago.
A second consumer also maintained that the price rise is "artificial", and driven by trader speculation in Europe and China.
European traders disagreed, saying that they are also struggling with the high prices from China.
"That right, it's all manipulated. I am actually buying at $5,700," joked one trader.
"I wish I could buy at $5,700," he added, reporting small sales at $6,500 per tonne.
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