Antimony ingot,Antimony Trioxide falls under pressure from lower offers

London 06 November 2009 12:44

Antimony prices fell for the first time since mid-September on Friday as some smelters lowered their offers to secure sales.

Trioxide-grade metal dipped to $6,250-6,450 per tonne from $6,275-6,475 per tonne previously, while standard grade II antimony fell to $6,200-6,400 per tonne from $6,250-6,450 per tonne.

Prices had been holding firm on tight supply from Chinese suppliers following an accident at Hsikwangshan Twinkling Star in October that resulted in the closure of its mines.

Producers raised their offers in the wake of the closure, but consumers' reluctance to buy metal above $6,000 has put pressure on spot prices this week, traders said.

"The market price is a bit softer – some of the smelters have reduced their offers in order to make some sales," one trader said, reporting business at the low end of the new MB quotes.

Hsikwangshan's production is still suspended, sources said, but they agreed that weak demand from end-users is offsetting the effect of the closure.

Both major antimony consumers in Europe, Sica and Campine, have not been active in the spot market for several weeks, market participants said.

Lower spot prices for antimony ore are adding to the weakness in the metal market, the trader said.

"The ore price has been coming down for a bit," he said.

While buying from Sica and Campine has been slack, consumers in Japan and Korea are buying steady volumes of metal, Asian sources said.