<article><p class="lead">Chinese antimony prices rose sharply to a seven-year high today as a shortage in concentrate feedstock supplies showed no signs of easing. </p><p>Prices for 99.65pc grade metal increased to 63,000-65,000 yuan/t ($9,752-10,061) today, the highest level since October 2013, from Yn56,500-57,500/t assessed on 25 February. The range for 99.85pc grade metal moved higher to Yn65,000-68,000/t today from the 25 February assessment of Yn57,500-58,500/t. </p><p>Buyers have found it difficult to secure metal supplies even at the upper ends of the ranges from Hunan, Guangxi and Yunnan provinces as most metal producers are reluctant to ship material given limited inventories. </p><p>The range for 99.5pc grade trioxide also reached the highest level since December 2012, rising to Yn62,000-64,000/t ex-works today from Yn51,000-52,000/t ex-works on 25 February, with some spot deals concluded at around Yn64,000/t. Many trioxide producers began to withhold material from sales and floated higher offer prices this week because of a shortfall in metal supplies.</p><p>Output in most China's production hubs, particularly the largest one Lengshuijiang city in south China's Hunan province, has remained idled since January because of a shortage in ore feedstock supplies following a fall in imports from Covid-19 and a production suspension at the country's largest miner Hsikwangshan Twinkling Star after its mining licence expired. The firm will not restart its ore production until May, and has yet to reopen its blast furnaces for trioxide as of today because of the ore shortage. A major mining company in Yunnan province has also halted its ore production because of mining license issues.</p><p>Hsikwangshan Twinkling Star, also China's biggest antimony metal producer, and all seven private-sector producers in Lengshuijiang city have yet to restart their metal furnaces as of today.</p><p>China's concentrate output fell by 10pc on the year to 61,000t in 2020, according to statistics released by the China nonferrous metals industry association. The country imported 41,939t of antimony concentrate in 42,774t in 2020, down by 31.77pc from 62,689t in 2019, as the pandemic weighed on production and shipments from many supplier countries since April last year.</p><p>There is also limited availability in the European and US markets after buyers reduced their purchases over the past year during the Covid-19 pandemic. But prices received a boost this year as low inventories prompted buyers to restock. Several key export firms in China received more buying enquiries after returning from the lunar new year holiday, but are not eager for sales as consecutive price gains in China have lifted export firms' replacement costs and as the longer payment cycle in international trade could squeeze their profit margins. </p><p>Export prices for metal jumped to $10,300-10,800/t fob today from $9,200-9,400/t fob on 25 February, with the range for 99.5pc grade trioxide increasing significantly to $9,700-9,900/t fob from Yn7,900-8,100/t fob over the same period.</p></article>
