Suppliers expect higher antimony prices

As the European spot market continues to strengthen and raw material supply keeps tightening in China, suppliers expect higher prices of antimony ingot in the short term.

A Hunan-based producer who just sold some antimony ingot at RMB42,000/t (USD6,000/t) ex works holds a positive attitude towards the market. The source revealed that as the government is enhancing the control of dynamite used in mining, raw material supply goes tighter. Therefore, the antimony ingot price will not move down in a short time. Additionally, psychological factors are also help market sentiments keep high. "As long as the market runs high in Europe, Chinese suppliers will not allow the price to decrease easily," said the source.

The smelter is running with an output of around 300tpm and holds a small quantity of stocks on hand. The source revealed that the prevailing price was at around RMB41,500/t (USD5,929/t) ex works last week.

A Shanghai-based trader also predicts that the antimony ingot price may move up further in the near future, though demand in domestic market is not very strong.

"The antimony price in Europe continues to rise, which stimulates producers to quote higher prices," said the source, adding that the offer received yesterday was as high as RMB42,300/t (USD6,043/t) ex works, RMB500/t (USD71/t) higher that at the beginning of this week.

"Our suppliers told us that as the raw material supply keeps tight, they may raise offers again in the near future," said the source, worrying that the antimony ingot market will keep at a upward trend before Olympics.