Antimony mining accident could reverse softening market

Prices for antimony metal have declined further in both the Chinese and the international market due to weak demand from both Chinese consumers and foreign buyers, said market participants.

However, the news that a mining accident occurred earlier in the week at an antimony mine near the city of Lengshuijiang may arrest the recent decline in prices sooner than expected.

Government officials from the Hunan Safety Bureau are reported to be in Lengshuijiang now and are investigating the accident. Some eight miners are thought to have lost their lives in the accident, exact details of which are yet unknown. All mining activity in the area is said to be suspended.

Export prices for standard grade II antimony ingot have declined to $5,230-5,280/tonne FOB at the moment, in comparison with $5,260-5,320/tonne FOB last week.

“Foreign buyers have remained reluctant to purchase antimony metal this week and due to the current climate of the market, we have had to lower our offers further,” said a Guangxi based supplier, reporting that the company traded antimony at $5,230/tonne FOB several days ago.

Meanwhile, a Guangdong based trader reported that low bismuth material has been exported at $5,300-5,330/tonne FOB this week, about $30-40/tonne lower than last week.

For the same reason, prices in the domestic market dropped a lot this week. “We concluded a deal for standard grade II antimony at Rmb39,200/tonne ($5,010/tonne) this week,” said a Guangxi based smelter, revealing that some businesses have been contracted at as low as Rmb39,000/tonne ($4,984/tonne) recently.

“The present market demand for low bismuth material is somewhat slow,” said a Hunan based smelter, reporting that the prices for this material have slipped by about Rmb200-300/tonne to only Rmb39,800-40,000/tonne ($5,086-5,112/tonne) this week.