Chinese antimony ingot prices remain firm at $5,400-5,500/mt CIF

Chinese antimony prices have held their recent gains with prices mostly quoting at $5,400-5,500/mt CIF Rotterdam as the market continues to be fuelled by tight raw material supplies, strong domestic demand and the cancellation of the export rebate, according to industry sources.

An official from Beijing Antaike, the state-run nonferrous information provider, told Platts on Tuesday: "Most spot material is being sold at above $5,300/mt CIF Rotterdam with better grade material sold at $5,400-5,500/mt CIF." He added: "Prices are likely to continue slowly moving upwards and prices may test even higher levels close to the year-end. But Antaike predicts that prices are likely to be capped at $5,800-5,900/mt on a CIF basis. It's difficult for prices to break through the $6,000/mt mark."

Local traders said domestic prices are now quoted even higher than exports, leveling at above Yuan 42,000 ($5,328)/mt. The Antaike official agreed, adding: "Recent business was heard being settled at a high of Yuan 45,000/mt, tax inclusive. Domestic demand is strong and prices are quoted even higher than the export values." One local trader added that local transactions have been active due to "more demand and tight supply".

An official from China's Yunnan Muli Antimony Mine which produces 6,000 mt/year of antimony trioxide, said: "Prices are still high as raw material supplies remain in shortage in China. The cancellation of the export rebate this year is also a factor holding prices firm," he added.

China cancelled the export rebate on unwrought magnesium, magnesium alloys, scrap, and granules effective September 15, 2006. The export rebate on most magnesium products before September was 5%.

INGOT EXPORTS SET TO DROP 5% IN 2006: ANTAIKE

Meanwhile, the Antaike official also noted that antimony ingot exports from China was likely to reduce by 5% in 2006 compared with last year's level.

"China exported about 15,000 mt of antimony ingot last year and this year's export level is likely to reduce as the removal of the export rebate slows exports," he said.

"Antimony exports as a whole including ingot, semis and other products, however, are expected to maintain at last year's level at around 80,000 mt. Despite expected lower ingot exports, exports of other processed products are likely to increase. So we will see total antimony exports this year maintain at last year's level."