European antimony trioxide market softening

BEIJING (Asian Metal) 12 Jun 08 – As European consumers are reluctant to accept the high prices from China, 99.5%min antimony trioxide price is softening from USD5,600-5,700/t to currently USD5,550-5,650/t CIF Rotterdam.
A European trader sees European antimony trioxide market is quite slow at the moment and consumers are not willing to accept the high prices. He told Asian Metal that he could buy at USD5,600/t FCA Rotterdam, but the problem is no customer is buying.
He opines that Chinese suppliers are not lowering their offers due to the tightness of antimony concentrate, so price of antimony trioxide is likely to keep stable during the summer. "My gut tells me that the Chinese restriction of dynamite will end in October, and price is unlikely to fall until then."
"We have different regions, and the summer holiday starts from end of June and lasts until middle of September, demand will be slow during the period," said the trader, who sees the demand of antimony trioxide had decreased compare to past years.
Another European trader disclosed to Asian Metal that price is weakening a little bit that he received an offer at USD5,550/t CIF European port in the middle of the week, and consumers are not interested.
The source holds that the current antimony trioxide price is too high compare to the metal price, which is in the range of USD6,300-6,400/t CIF Rotterdam. "When metal price is around USD6,300/t, trioxide price should not be higher than 5,400/t. Market will correct the price in the coming two months when consumers go on holiday," said the trader.
The third trader confirmed the lower offers of antimony trioxide from China. "Non-brand name material is around USD5,550/t CIF Rotterdam, and Twinkling Star is USD150/t more expensive. However, market is very quiet."
He thinks it is about time the antimony trioxide price to fall as it has increased faster than the antimony metal prices in the last two month. "If metal price remains at USD6,300/t, trioxide price should be at least lower than USD5,500/t." Moreover, summer is coming, and demand will only to decrease in the next two weeks. "So we are not buying at the moment."