Almost all the Lengshuijiang-based antimony smelting plants and mines have suspended production and sources reported that people could hardly get antimony ingots from the region, so that suppliers increased offers accordingly though few deals are reported at present.
A Lengshuijiang-based smelter with a monthly production capacity of around 500 tons of antimony ingots revealed that he has suspended production for almost twenty days and they do not have antimony ingots to offer. "We have suspended production during the Olympic Games for around 40 days and shortly after we resumed the production, the government issued another order for the second round of suspension, so almost all the smelters produce very few amount of the metal and they have sold out their stocks so far," explained the source.
The output of antimony metal in the Lengshuijiang region takes up approximately above 40% of the total output of China. People can figure it out if the production suspension last for a while, the total supply will be greatly reduced in China, especially those sold through illegal channels to Europe.
Therefore, in view of the potential tight supply of the antimony materials, those who hold a certain amount of stocks on hand increased the quotations for antimony ingot 99.65%min to RMB38,500/t (USD5,637/t) VAT excluded ex works right after the Nation Day holiday this week, up from RMB37,500/t (USD5,490/t) VAT excluded ex works late September. The source believes that the price may only become stable in the coming days if European buyers remain inactive. However, He heard that some Chinese exporters have just increased their offers for antimony ingot 99.65%min to USD6,400/t CIF Rotterdam in the mid of this week, up from USD6,200-6,300/t CIF Rotterdam early this week; if European buyers come to make purchases at this moment, the price may continue to increase. In general, he is optimistic about the future market as the supply will become tight once more buyers come back to the market.
The source does not worry about the resumption of the production. "I know we will resume production and it is just a matter of time because antimony industry is the supporting industry in Lengshuijiang region, so that the local government will not drop the opportunity to collect more tax revenue."
Another Lengshuijiang-based smelter who has suspended production for the same period of time confirmed that many other smelters have suspended production and many of them do not have stocks on hand. The source puts the mainstream price in Lengshuijiang region is RMB38,300-38,400/t (USD5,608-5,622/t) VAT excluded ex works, up by around RMB700-800/t (USD102-117/t) from before the National Day holiday. The source has a monthly production capacity of around 400-500 tons.
The source believes that the market may become stable in the coming days as the demand from European buyers remain low, which is one of the key elements to affect the price to go up and down. For the rest of the months, the source also holds an optimistic attitude towards it because of the potential tight supply of the antimony materials. He is now looking for antimony concentrate and will purchase once he finds available antimony concentrate.
A Lengshuijiang-based smelter with a monthly production capacity of around 500 tons of antimony ingots revealed that he has suspended production for almost twenty days and they do not have antimony ingots to offer. "We have suspended production during the Olympic Games for around 40 days and shortly after we resumed the production, the government issued another order for the second round of suspension, so almost all the smelters produce very few amount of the metal and they have sold out their stocks so far," explained the source.
The output of antimony metal in the Lengshuijiang region takes up approximately above 40% of the total output of China. People can figure it out if the production suspension last for a while, the total supply will be greatly reduced in China, especially those sold through illegal channels to Europe.
Therefore, in view of the potential tight supply of the antimony materials, those who hold a certain amount of stocks on hand increased the quotations for antimony ingot 99.65%min to RMB38,500/t (USD5,637/t) VAT excluded ex works right after the Nation Day holiday this week, up from RMB37,500/t (USD5,490/t) VAT excluded ex works late September. The source believes that the price may only become stable in the coming days if European buyers remain inactive. However, He heard that some Chinese exporters have just increased their offers for antimony ingot 99.65%min to USD6,400/t CIF Rotterdam in the mid of this week, up from USD6,200-6,300/t CIF Rotterdam early this week; if European buyers come to make purchases at this moment, the price may continue to increase. In general, he is optimistic about the future market as the supply will become tight once more buyers come back to the market.
The source does not worry about the resumption of the production. "I know we will resume production and it is just a matter of time because antimony industry is the supporting industry in Lengshuijiang region, so that the local government will not drop the opportunity to collect more tax revenue."
Another Lengshuijiang-based smelter who has suspended production for the same period of time confirmed that many other smelters have suspended production and many of them do not have stocks on hand. The source puts the mainstream price in Lengshuijiang region is RMB38,300-38,400/t (USD5,608-5,622/t) VAT excluded ex works, up by around RMB700-800/t (USD102-117/t) from before the National Day holiday. The source has a monthly production capacity of around 400-500 tons.
The source believes that the market may become stable in the coming days as the demand from European buyers remain low, which is one of the key elements to affect the price to go up and down. For the rest of the months, the source also holds an optimistic attitude towards it because of the potential tight supply of the antimony materials. He is now looking for antimony concentrate and will purchase once he finds available antimony concentrate.
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