China's antimony prices rise to near 20-month high

Chinese antimony prices hit a 20-month high this week, supported by reduced concentrate and metal availability resulting from lower concentrate imports and domestic output shutdowns.

Prices for 99.65pc grade metal fell to a four-year low of 34,000-35,000 yuan/t ($5,152-5,303/t) ex-works on 26 May as limited profit margins prompted many producers to scale back sales and lift offer prices, before rebounding to Yn34,500-35,500/t ex-works on 30 June.

The range rose by Yn1,250/t from the midpoint of the 22 December range to Yn41,000-42,000/t ex-works on 24 December and by another Yn1,000/t to Yn42,000-43,000/t ex-works on 29 December, the highest level since 7 May 2019, as key metal producers in the major production hubs of Hunan and Guangxi provinces withheld material from sales and raised offer prices on concerns over supply shortages for concentrate feedstock.

Prices for 99.85pc grade metal were last assessed at Yn42,500-43,500/t ex-works on 29 December, the highest level since 21 May 2019.

"We are holding limited stocks of 99.65pc grade and 99.85pc grade metals and have heard that deals were concluded at Yn42,500/t ex-works for 99.85pc grade metal in Hunan yesterday. I do not want to destock, although some buyers have raised bid prices to Yn43,000-43,500/t, because we are finding it difficult to secure raw material feedstock now," said a source at a metal producer, with 5,000 t/yr of capacity, in Hunan's Lengshuijiang city, the country's largest antimony-producing region.

China's antimony concentrate production from January-October rose to 51,200t metal equivalent, up slightly by 2.2pc from 50,100t during the same period in 2019, according to the China nonferrous metals industry association. Its January-October imports totalled 39,619t, down by 26.16pc from 53,656t from a year ago as the Covid-19 pandemic has been pressuring production and shipments in some supplier countries since April.

China's domestic concentrate production in November-December will likely fall as key producers in Hunan and Guangxi have suspended production for technology upgrades, tightening spot concentrate availability around the end of the year.

Only two metal producers in Lengshuijiang city are in operation this week. Other producers have suspended production owing to limited raw material supplies.

Producers of antimony trioxide, which are main downstream consumers of antimony metal, this week increased their offer prices this week in line with the rise in metal prices. Prices for 99.8pc grade trioxide climbed to Yn39,000-40,000/t ex-works on 29 December, the highest level since 11 March 2020 and up from Yn38,000-39,000/t ex-works on 24 December.

Most trioxide producers are focusing on making deliveries to buyers before the year ends, reporting stable domestic demand from the downstream plastic, rubber, textile and chemical industries that consume antimony trioxide as a flame retardant or catalyser. Flame retardant is used in the building, household electrical appliance, electronics and automotive industries.

Chinese output of plastic products totalled 60.76mn t during January-October, down by 6.2pc on the year. Production of synthetic fiber rose by 0.6pc to 45.57mn t over the same period, while output of synthetic rubber increased by 3.8pc to 6.05mn t over the same period, according to data from the national bureau of statistics (NBS).

Total automotive sales in China rose by 12.6pc in November to 2.77mn, with sales continuing to receive a boost from a sustained surge in truck sales, which increased by 23.7pc on the year during January-November. Car production rose by 7.5pc in November to 2.33mn, while car sales increased by 11.6pc on the month to 2.3mn, according to the China association of automobile manufacturers.

Domestic output of household refrigerators totalled 73.82mn units during January-October, up by 4pc from a year earlier. Production of household air-conditioners reached 170mn units in the first 10 months of this year, down by 11pc on the year, the NBS data showed.