Antimony suppliers watch the market

BEIJING (Asian Metal) 6 Jul 07 – With the cancellation of 5% tax rebate on antimony trioxide from July 1, export market for antimony trioxide becomes stagnant. The recent closures of antimony smelters in Hunan province lead to more unpredictable future for the market.
A Yunnan-based trader reported that they have suspended quoting for both antimony ingot and trioxide. “Producers in Yunnan raised offers of antimony ingot to RMB40,000/t (USD5,256/t) ex works from RMB38,000/t (USD4,993/t) ex work seen a week ago. But it’s impossible for us to purchase at such a high price and then export. Foreign buyers refuse to buy at USD5,200/t FOB, let alone USD5,350/t FOB,” said the source.
Commenting on lower offers of USD4,950-5,000/t CIF Rotterdam for antimony ingot, the source disclosed that those materials were released to the international market through illegal way. However, with most smelters in Hunan stopping production, both Chinese state-owned exporters and traders who are able to source low-price materials, cease quoting to overseas buyers.
The source also suspended export business of antimony trioxide due to the tax regulation. ”We raised offers to cope with the extra cost caused by the removal of tax rebate, but our customers would not like to accept. The demand is very weak, so we did not bother to quote,” said the source.
Meanwhile, a Guangdong-based trader is also watching the market without concluding any new deals recently. “Some smelters in Lengshuijiang, Hunan are offering RMB36,000-36,500/t (USD4,731-4,796/t) VAT excluded for antimony ingot, almost RMB2,000/t (USD263/t) up compared to ten days ago. We haven’t made up our mind whether to buy some or not,” said the source. The source also reported that some major producers in Hunan do not quote at the moment.
Many participants believe that the antimony products prices are likely to move up. However, a large price increase can be ruled out due to continued weak demand from international market.