Japan's spot antimony prices steady; trade slows on China break

Spot antimony ingot prices in Japan have held steady this week at around $5,200/mt CIF Japan due to slow trade, Japanese trade sources said Tuesday.

One Tokyo-based trader said: "Last week we did some sales at $5,200/mt CIF Japan but there has been no deals this week." The China market is closed from October 1-7 for National Day holidays. "Demand is stable in China but has actually picked up compared with last year," he said, adding: "I am not so sure whether prices will pick up again after the Chinese holidays. But we may see the effect later this year or January next year on Chinese government cutting tax rebates on antimony since September 15." The Japanese trader said he has heard views that the Chinese tax authority would accept applications for tax rebates until the end of this year as long as the contract was signed on September 14 or before. Chinese producers in China, however, said the Chinese authority had refused to accept documents on tax rebates starting September 15.

The Chinese government cancels the previous 5% antimony export rebate effective September 15, 2006. But according to industry sources, the news has failed to firm prices.

Meanwhile, the trader added that it is likely to become "more difficult" to source the high grade antimony ingot from China in the future. Most Japanese favor importing the number one grade antimony metal, but more feed supplies from China are now with higher impurities as the antimony concentrates that they import from overseas are in lower quality, the trader said, adding: "In the future, it may become more difficult to source the good quality antimony ingot from China."

Another Japanese trader added: "Prices are now steady at around $5,200/mt CIF Japan. We have received no spot offers from China so far this week. Domestic demand is strong in China and more supplies go to domestic sales instead of exports."

One Hong Kong-based trader said offers for antimony metal from China were at a standstill in China this week affected by the country's national holidays this week. "Offer prices to Europe was last heard quoting at around $5,300/mt CIF Rotterdam. I still think the $5,000/mt mark is a key support level for antimony since antimony concentrate supplies are still in shortage in China."