Ore shortages, demand to support China antimony prices

  • Market: Metals
  • 15/01/21

Chinese antimony prices have risen to the highest level since April 2019, supported by a shortfall of concentrate supplies caused by lower imports and depleting domestic resources.

Argus last assessed prices for 99.65pc grade metal at 44,000-45,000 yuan/t ($6,801-6,955/t) yesterday, up by Yn1,000/t from Yn43,000-44,000/t on 12 January. Prices bottomed out at a four-year low of Yn34,000-35,000/t on 26 May 2020 but then rebounded, as limited profit margins, tight concentrate supplies, higher pollution costs and a recovery in demand following the easing of Covid-19 restrictions in China prompted many producers to lift offer prices in the second half of 2020.

Tight spot availability

A 5,000 t/yr metal smelter in the main production hub of Lengshuijiang city in Hunan province has halted output because of insufficient feedstock supplies. Most private-sector producers in the city have suspended output and withheld material from sales because of the ore shortage.

A Shanghai-based trading firm has stopped quoting prices as it is unable to secure metal with bismuth higher than 100ppm from smelters in Yunnan and Guangxi provinces

Mining operations at China's largest antimony producer Hsikwangshan Twinkling Star have been idled for most of the past year because of the expiration of its mining licence, according to market participants.

China produced 56,900t of antimony concentrate in the first 11 months of 2020, up slightly from 56,300t from a year earlier, according to statistics released by the China nonferrous metals industry association (CINA). But CNIA's output data for 2020 might include some double counting and should be revised down by 10-15pc from 2019 to take into account production cuts and closures in Hunan and Guangxi provinces, market participants said.

China imported 41,939t of antimony concentrate in January-November 2020, down by 26.2pc from 56,811t in the same period of 2019, as the Covid-19 pandemic weighed on production and shipments in some supply countries since April last year.

A resurgence of Covid-19 cases in China since late December has forced the countrty's customs agencies to introduce strict quarantine measures. This, coupled with the expected absence of logistics services during the 11-17 February lunar new year holiday, will continue to pressure China's concentrate imports.

Most metal producers have been withholding material from sales since late December given limited inventories. Only two or three producers in Lengshuijiang city are holding stocks, while most others have depleted inventories. One metal producer in Yunnan province has suspended output until March after selling all of its stocks to a consumer in Guangxi province at Yn44,000/t.

Renewed stockpiling interest

Stockpiling interest from trioxide producers is rising ahead of the lunar new year holiday, amid a focus on fulfilling deliveries signed at the end of December. Consumers from the plastic, rubber and catalyst sectors have also entered the market to restock for requirements around the holiday.

International consumers have also shown higher buying interest because of tight spot supplies in Europe and the US. Export firms have raised offer prices to keep pace with the higher domestic prices, a stronger yuan against the US dollar and freight costs caused by a shortage of containers. Export prices were last assessed at $7,200-7,400/t fob on 14 January, hitting the highest level since 2 April 2019.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
28/03/24

Taiwan scrap imports fall 13pc on year in February

Taiwan scrap imports fall 13pc on year in February

Singapore, 28 March (Argus) — Taiwan's ferrous scrap imports fell on the year in February, reflecting rising prices, subdued activity during the holiday period and high stocks. Ferrous scrap imports totalled 218,887t, down by 21.3pc on the month and 13.2pc on the year, customs data showed. Trade sources attributed the decline to rising seaborne scrap prices in November and December. Trade sources said lower bookings were expected given the lunar new year holiday in Taiwan on 8-14 February, with mills likely to have been prudent in their procurement since November as delivery of containerised scrap usually takes 8-10 weeks from the signing of an agreement. The US remained Taiwan's top ferrous scrap supplier in February, providing 81,249t, although this was down by 32.6pc on January and 25.1pc on the year. Ferrous scrap imports from Japan fell by 10.3pc on the month and 15pc on the year to 55,510t in February. Imports from Dominican Republic rose by 7.1pc on the month and 16.9pc year on year to 17,563t. Scrap supply from Australia fell by 47.8pc year on year to 9,921t. Trade sources said underwhelming fundamentals in Asia meant Australian sellers focused on south Asia, where they could achieve stronger margins. Looking ahead, a slowing construction sector could mean lower scrap imports. "The shortage of manpower and rising building material costs have impacted the initiation pace of new construction projects," the Taiwan Institute of Economic Research said on 25 March. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Read more
News

Japan’s SMM eyes Li-ion battery recycling plant by 2026


28/03/24
News
28/03/24

Japan’s SMM eyes Li-ion battery recycling plant by 2026

Tokyo, 28 March (Argus) — Japanese battery cathode producer Sumitomo Metal Mining (SMM) plans to set up a lithium-ion (Li-ion) battery recycling plant in western Japan's Ehime prefecture by June 2026. The recycling plant is expected to have a processing capacity of around 6,000-7,000 t/yr of black mass, equivalent to batteries for around 60,000 electric vehicles, a company representative told Argus on 28 March. Black mass is the shredded remains of cathode materials such as nickel, cobalt and lithium. The company will start construction sometime during March-April 2025, but the timing for commercial operations was undisclosed. SMM has also entered into a partnership with nine domestic recycling partners to build a supply chain for collecting used Li-ion batteries, the company representative added. SMM produced cathodes using nickel and cobalt from recycled Li-ion batteries in June 2023. Domestic battery producer Prime Earth EV Energy proved the quality of SMM's used cathodes in performance testing. The recycled ratio of nickel and cobalt used in the test was more than 6pc and 16pc respectively. This exceeds the standard rates that EU battery regulations tentatively set as minimum recycling requirements for each material, a SMM representative previously told Argus . The EU regulation is expected to take effect from 2031 after approvals by member countries. By Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Centaurus' Jaguar Ni mine in Brazil eyes 2027 output


28/03/24
News
28/03/24

Centaurus' Jaguar Ni mine in Brazil eyes 2027 output

Singapore, 28 March (Argus) — Australian mining company Centaurus Metals said that its Jaguar nickel sulphide project in Brazil is undergoing a feasibility study and aims to start production in mid-2027. Jaguar, bought from Brazilian mining firm Vale in 2020 , is estimated to hold 109mn t of 0.87pc grade nickel for an estimated 948,900t of contained nickel. The nickel product will be largely targeted at the Atlantic market, with expectations that demand will strengthen in the region. "Demand for nickel we believe is not going away. And if you look at what's going to happen in the US and European markets in particular, nickel will probably be a bigger part of the battery composition than anywhere else," Centaurus' managing director Darren Gordon said at the Tribeca Futures Commodities conference held in Singapore on 26 March. "There's a huge amount of nickel that still needs to come into the market." Many Australian mining firms have struggled with a slump in global nickel prices earlier in the year because of a supply glut caused by increased volumes from Indonesia, coupled with a slowdown in demand. Several Australian mines have halted operations , while other processing facilities were placed on care and maintenance programmes . But Centaurus is hopeful that Jaguar will be able to compete on a cost and environmental basis with Indonesian supplies. "Nickel is going to continue be supplied out of Indonesia in very large ways so we are going to compete on costs. And we think that when we deliver the feasibility study, we will be able to demonstrate that we can compete on costs. But overlay on that, we have this very low carbon footprint associated with our project," Gordon added. Centaurus said Jaguar is one of the lowest carbon footprint nickel project globally, following a review done by a metals and mining ESG research company. Once operational, greenhouse gas emissions from the project are forecast to be 7.27t of carbon dioxide/t of nickel equivalent, which is assessed to be lower than 94pc of other global nickel production. By Sheih Li Wong Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Automakers divert away from blocked Baltimore port


27/03/24
News
27/03/24

Automakers divert away from blocked Baltimore port

Pittsburgh, 27 March (Argus) — Automakers are adjusting their supply routes following yesterday's collapse of the Francis Scott Key Bridge at the Port of Baltimore, the busiest US port for auto shipments. The Port of Baltimore handled 847,158 autos and light trucks last year, more than any other US port, according to the Maryland state data, with imports accounting for about 75pc of the volume, the Alliance for Automotive Innovation said. With vessel traffic in and out of the port suspended indefinitely automakers said they will reroute deliveries though other east coast ports. This includes General Motors, which said it still expects minimal impact on its operations. Ford said it has already secured shipping alternatives where workarounds are necessary, but did not share details. For Mercedes-Benz, Baltimore is among its busiest ports for imports. The company said it has flexibility to adjust its supply routes and noted ports in Charleston, South Carolina, and Brunswick, Georgia, as other top import locations. The port closure has no effect on Mercedes vehicle exports or parts supply at its Tuscaloosa, Alabama plant, the company said. Volkswagen Group, which includes the Audi and Porsche brands, said it received about 100,000 vehicles last year through Baltimore to ship to US dealers in the Mid-Atlantic and northeast, but its operations will not be limited since its facility is located on the seaboard side of the bridge, at Sparrows Point. Volkswagen said it may see some trucking delays from highway rerouting, however. Toyota relies on the Port of Baltimore primarily for vehicle exports, but said it is not the company's main North American port. Stellantis, maker of numerous brands including Chrysler and Jeep, said it has begun discussions with transportation providers to ensure an uninterrupted flow of vehicles. The US imported 723,435 cars and light trucks in January, up from 634,228 a year earlier, according to customs data. Mexico supplied just over one-third or 2.97mn of the total number of US vehicle imports in 2023, followed by Japan and Canada, with 17.3pc and 16.3pc, respectively. By James Marshall Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Red Sea tensions could halt EU India HRC quota overfill


27/03/24
News
27/03/24

Red Sea tensions could halt EU India HRC quota overfill

London, 27 March (Argus) — Elevated shipping times caused by tensions in the Red Sea could prevent India's hot-rolled coil (HRC) safeguard quota in the EU from overfilling on 1 April, as participants had expected. India shipped just over 520,000t of HRC to the EU in December and January, according to customs data, all of which appears to have been cleared into the first-quarter quota. Including unused tonnage rolled over from the previous quarter, this quota totalled 574,550t, with just 46,934t currently unused, meaning that 527,000t is utilised. This suggests that material shipped from India in February will predominantly comprise the April-June quota of 294,662t. Vessel tracking data show that India shipped 404,582t of flat-rolled products to the EU in February, although the data do not give detail by product. Indian material could theoretically use one-third of the other countries' quota in April-June too, under the safeguard regulation. That quota will fill quickly again, as has been the case in recent quarters. Longer shipment times mean that most Indian material shipped in the second half of February — 215,170t of flat-rolled — will arrive after 1 April, and either be cleared or held over until the next quarter: after day one, any material cleared above the quota amount pays a straight 25pc duty, so it is likely that some will be held over from April-June and clear into the July quota. Vessels going round the Cape of Good Hope rather than sailing through the Red Sea will take an average of 45.5 days to arrive at EU ports from India in April, according to data from Kpler. Vessels arriving by the Red Sea in January were taking around half this time, or even less. This means that around 189,000t of February shipments could be cleared into the April-June quotas on 1 April, plus tonnage held over from the current period, totalling 46,934t for HRC. Assuming that all the material shipped in the first half of February is HRC, the quota would not overfill on day one, even with the material held over from this quarter factored in. But it is expected to fill later in the month. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more