[+/-] : Antimony ingots,antimony trioxide prices soar in China on Hunan supply concerns

Shanghai 23 October 2009 08:30 Published by samjiefu@gmail.com

China's domestic antimony prices are being driven up by rumours that Hunan province will force antimony miners to consolidate in the wake of the Hsikwangshan Twinkling Star accident in early October.

Grade II antimony in the Chinese free market was quoted at 42,000-43,700 yuan ($6,151-6,400) per tonne this week.

"The prices are going up these days, and most of the offers have settled above 43,000 yuan per tonne," said an analyst at Minmetals in Beijing.

Hunan's provincial government may try to restructure antimony mining in the area by reducing the number of companies in operation from 80 to just six through mergers and shutdowns of smaller producers, sources said.

Twenty-six miners died earlier this month when their transport cage plunged down a mineshaft, an accident that once again highlighted dangerous conditions in China's mining sector.

The provincial government wants fewer and bigger companies to ensure mine safety can be monitored more effectively, source said. 

"Once the government meddles with the accident [investigations], the nearby smaller miners may be asked to shut down for safety reasons," said an analyst from a Securities Company in Shanghai.

Market participants did not know when Twinkling Star would resume production, and the company could not be contacted.

"Definitely, the accident will cause output losses for Twinkling Star, but what's worse, it will spread supply concerns all over Hunan province and the country as a whole," he added.

Hsikwangshan is a subsidiary of Hunan Nonferrous and is also the top antimony producer in the world.

Published by samjiefu@gmail.com

"We have no idea when the mine will resume operation in Hsikwangshan Twinkling Star, but it will for sure take some time," said a Chinese trader, adding that prices would likely rise further.
Published by samjiefu@gmail.com

"Antimony prices were already in line with other non-ferrous metals and the strong performance of gold, which began to surge even before October," she said.
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[+/-] : Cobalt prices jump higher as enquiries turn into business

21 October 2009 12:53  Published by samjiefu@gmail.com

Cobalt prices moved up again on Wednesday as traders and producers were able to turn some of the new enquiries they are fielding into business.

Low-grade cobalt rose to change hands at $16-17 per lb from $15.40-16 last week, while high-grade climbed to $17-18.50 from $16.50-17.50.

"Volumes last week began going up," one trader, who sold Russian material at $16.80 per lb, said.

"There has been a 10-20% uplift in prices, initially inspired by traders on the back of speculative Chinese enquiries," he added.

But he preached caution. Despite having sold high-grade metal at $18.80 per lb on a delivered works basis in China, he said: "It's all going on in the $16-18 range, but at the top end it's all very quiet."

A second trading source said that the move up in prices last week caught some consumers out.

"It's a classic situation. There is pent-up demand from consumers, but they always miss the boat. They wait for the market to bottom, but by the time it has, it's too late," he said.

There are many hundreds of tonnes of enquiries for metal in the market to cover the end of this year and 2010, he said.

"The reality is there's not much metal out there and the chemicals and battery sectors are going well," he said, predicting that prices will trade in an $18-20 range in November.

A producer source agreed. "Batteries are doing pretty well in Japan and Korea," he said. "But it's all really a question of supply."

To illustrate the problems traders and consumers face in obtaining material, many pointed to Kasese's continuing absence from the market; the fact that Chambishi has not yet restarted; BHP Billiton's withdrawal from the spot market; and to reports from other market participants that Sherritt is sold out of spot material till December.

But one consumer source was sceptical about what is driving the higher prices.

"The market still seems to be moving up but, to my feeling, for the wrong reasons," he told MB. "Demand for end products remains significantly depressed."

The bearish factor of overall supply rising on higher production from sources such as Freeport McMoRan's Tenke Fungurume mine in the Democratic Republic of Congo is also being ignored.
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[+/-] : Antimony ingots,antimony trioxide stable in tight global market

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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[+/-] : Antimony ingots,antimony trioxide holds firm on tight supply

Antimony prices held firm on Friday as supply in Europe remained tight and Chinese suppliers maintained their high offers.

Trioxide-grade metal is trading at $6,275-6,475 per tonne and standard grade II metal is trading at $6,250-6,450 per tonne.

Prices surged in the first half of the week following a fatal accident and the subsequent suspension of all mining activity at Hsikwangshan Twinkling Star, the world's largest producer of the minor metal.

"Since the [MB] prices went up on Wednesday, I have had a lot of demand. I have had calls from Chinese people, from consumers, from European traders," one trader said. "The consumers have not stopped bidding me all week."

Business was reported in the second half of the week between $4,300 and $4,500 per tonne, with traders reporting tight supply in Rotterdam.

Offers out of China have been as high as $7,000 per tonne this week, although most material is offered at around $6,500 per tonne.

No material is expected to arrive in warehouses from China for another three to four weeks, market participants said, adding that they are expecting the mine suspension at Twinkling Star to continue for the next month at least.

"The mine will not be reopening for a month, and it could be three months before they reopen fully," the first trader said.

A second trader agreed that demand has been good this week, but forecast little upside in antimony from this week's levels.

"I have heard some ridiculous numbers this week above $6,500, but fundamentally I still see the trade as comfortable at the highs… Yesterday, there was very heavy trading, there was a lot of volume sold," the second trader said.

With demand from cable manufacturers set to decline as the northern hemisphere winter draws in, prices are unlikely to gain more ground, consumers and traders said.

"I don't see us getting much beyond the 2008 high," the second trader said.

Trioxide-grade antimony peaked at $6,850 per tonne in September last year, an all-time high for the metal. Prices then fell back to $4,200-4,400 per tonne by the end of 2008 as slowing industrial activity hampered demand. ...
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[+/-] : Antimony trioxide prices continue to increase in the US

19 Oct 09 – Prices for antimony continue on the rise this week as participants report purchases completed last week in the USD5,700-USD5,800/t for antimony trioxide 99.5%min of Chinese origin. Participants anticipate that the price for antimony trioxide will reach the USD6,000/t mark by the end of the month as the effect of the Twinkling Star production stand-still for safety inspections begins to affect product availability.
Asianmetal(English) http://www.asianmetal.com FE4Q
A California-based trader, who moves about a container of antimony products a month, confirmed that the prices for antimony products are on the rise. The trader said that he purchased a container of antimony trioxide 99.5%min from a Chinese source late last week at USD5,800/t CIF California, for late November delivery. He stated that his previous purchase of a container of antimony trioxide 99.5%min was concluded at about USD5,200/t CIF California in early September.
Asianmetal(English) http://www.asianmetal.com 58P1
"The prices for antimony products have increased a lot since news of the mining accident two weeks ago. I expect prices to continue its upward trend well into November as the effects of the mine and smelter closures in Hunan begin to affect the availability of antimony products," said the source.
Asianmetal(English) http://www.asianmetal.com 55P5
A California-based consumer in the chemical industry, with a monthly consumption of one container of antimony trioxide a month, signed a contract for a container of antimony trioxide 99.5%min early last week at USD5,750/t CIF California also for November delivery. The buyer disclosed that the price for antimony has increased by about USD4,00/t since his last purchase was finalized in September. At this time, he does not expect the price to stabilize until the end of the year. ...
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[+/-] : Magnesium ingot producers expect clear future

16 Oct 09 – The concluded price of magnesium ingot keeps comparatively stable. Producers, most of whom are running below their capacities, are fulfilling signed contracts without much material in stock. They expect the market to be clearer in the near future. Magnesium ingot price in Shaanxi and Shanxi still keeps on the level of RMB15,150-15,350/t (USD2,218-2,247/t) ex works and RMB15,400-15,600/t (USD2,254-2,284) ex works respectively.
Asianmetal(English) http://www.asianmetal.com XZ3G
A Shanxi-based producer, who is operating at one third of its capacity of 1,500tpm, revealed that they have concluded some small deals and still keep a stock of 300-400t of magnesium ingot in hand. "We do hope the price can go up, so that we won't have to sell magnesium ingot with little profit," said the source.
Asianmetal(English) http://www.asianmetal.com FRM7
The source reported to Asian Metal that consumers still have the intention of buying magnesium ingot, but the demand is not strong enough to push up the price. "Because of the comparatively low cost, the offers from Shaanxi-based smelters are generally RMB200-300/t less than those from Shanxi-based ones," added the source.
Asianmetal(English) http://www.asianmetal.com 108Q
A Ningxia-based producer, whose output is nearly 1,000tpm now, disclosed that they finalized some contracts at RMB15,600/t (USD2,284/t) ex works after the long holiday. "With no stock in hand, we raise our offer to RMB15,700/t (USD2,299/t) ex works, although the concluded price will be a little lower. I think the market will improve to some extent," the source said.
Asianmetal(English) http://www.asianmetal.com 042M
According to the source, some producers in Fugu also lift their offers of magnesium ingot to RMB15,400-15,500/t (USD2,254-2,269/t) ex works, and they do not accept prices below RMB15,200/t (USD2,225/t) ex works without acid treatment and package. "The magnesium ingot market seems to be a little better, but I am still not sure until now. We are looking forward to a clear trend as soon as possible," added the source. ...
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