Antimony prices have shot up since February of this year, owing mainly to Chinese efforts at cleaning up the industry’s mining and refining practices. China currently accounts for about 90 percent of global primary antimony production and much of this is further concentrated around the Xikuangshan mine in central Hunan. Temporary factory closures, resulting from new environmental and production standards being put in place, have effected all producers and resulted in antimony prices virtually doubling over the past 12 months [see chart below]. The supply shortage problem has been exacerbated by Chinese producers’ efforts to capitalize on this shortage and push prices up even higher. Recently, factories have been unwilling to quote on antimony metal and it is not expected that international purchasers will be able to get new material from China for at least another month. The concentration of the antimony industry, combined with increased government production and export regulation has made conditions ripe for trading companies and producers to collaborate in order to limit supply and push up prices. Consequently, it can be expected that prices for antimony products will continue to be volatile until the new environmental and production standards are fully implemented. The SM Price Forecast Index expects to see FOB antimony metal prices exceed US$ 10,000/mt by November and FOB antimony trioxide prices in the range of US$ 9,500-10,500/mt through the end of 2010.
Source: Minormetals.com
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