London 27 October 2009 11:41
The antimony market has been slow so far this week, with major European buyers staying out of the market until prices fall.
Trioxide-grade antimony has been trading at $6,275-6,475 per tonne for the past two weeks, while standard grade II metal has been changing hands between $6,250 and $6,450 per tonne.
Prices are trading at their highest level this year amid tight Chinese supply following the fatal accident and subsequent mine suspension at Hsikwangshan Twinkling Star in China's Hunan province.
But the European spot market has been quiet this week with traders and consumers keen to avoid paying the higher prices ahead of the winter in the northern hemisphere, traditionally a period of lower consumption.
With so little buying in the spot market, some Chinese suppliers are being forced to lower their offers, sources told MB.
"We have done small lots around $6,350 or $6,400, but everything's within the range. Sica and Campine are staying out of the market and they're trying not to stimulate prices," one trader said.
Offers are around $6,300-6,400 per tonne, compared with highs of $6,500-6,700 per tonne two weeks ago, sources said.
"We are not buying, but we believe we will be able to buy lower soon," one consumer, who was unable to report booking any business so far this week, said.
"I think the game's up on antimony," a second trader said. "Some people were talking $7,000, but we're not going there yet."
The second trader is booking small parcels of metal within the MB ranges, he said, while the first trader agreed that volumes have been low in the market for the past week.
"I am not sure how long they're going to stay out of the market, but they don't want to encourage the prices to go up to $7,000," he said. "People don't seem to be that excited anymore, I can see prices coming back to more realistic levels."
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