US antimony prices hit three and a half-year lows this week amid stagnant domestic demand and persisting oversupply from China, with sources projecting further declines in the new year.
US antimony prices remained at $2.60/lb this week in light of thin trading over the US holiday season.
Supplies of the metal have been abundant throughout the second half of the year, reflecting efforts by Chinese producers to shift volumes abroad and lower import costs.
State-controlled China Minmetals purchased all of the 18,661t of antimony metal held by the Fanya metal exchange on 31 August for Yn29,259/t ($1.90/lb). Coupled with the current oversupply in the country, the additional metal has weighed on the larger global market.
And demand in the US was largely flat.
As Chinese prices have fallen, many US buyers refrained from entering the spot market or bought minimal volumes. As a result, the US market fell by 12pc from its second-half highs and by 27pc from the same period a year earlier.
Because the current supply and demand fundamentals are not expected to change drastically going into 2020, participants project further downward pressure, at least through the first quarter of next year.
Chinese antimony prices have fallen by 7pc to $5,700/t since 13 November amid ample supply and weaker demand. The market touched a recent high of $6,150/t, reflecting a short-term shortage of feedstock and a bump in demand.
US antimony prices typically track the direction that the market takes in China because roughly one-third of its supply originates from the country.
The US imported 1,763t of antimony from China in the first 10 months of the year, down by 30pc over the same time period a year earlier, according to data from the country's commerce department.
The US imported 5,844t of antimony in the first 10 months, up by 5.4pc compared with a year earlier amid increasing imports from Vietnam. Imports from Vietnam hit 930t through October, nearly twice as much as a year earlier.
By Jeremy Rakes
