Hsikwangshan Twinkling Star restarts Sb metal output

Chinese state-owned antimony producer Hsikwangshan Twinkling Star restarted its metal production this week after completing technology upgrades and furnace maintenance that began in late October.

The firm will maintain regular operations during the lunar new year holidays during 24-30 January and the lantern festival on 8 February. Hsikwangshan has a 20,000 t/yr capacity for metal and 40,000 t/yr for trioxide. The company is expected to produce 20,000t of metal this year following its technology upgrades.

Many producers in China's main antimony producing regions Hunan, Guangxi, Yunnan and Guizhou provinces will halt production from next week for the holidays and will not restart production until mid-February.

Lengshuijiang-based Hunan Zhirong Antimony, with 400-500 t/month of capacity, closed its blast furnaces on 9 January and will not restart until April. Most producers in Guangxi, including Shengfu, Hechi Wuji and Nandan Zhenghua, have halted production and will not resume operations until 15 February.

Hsikwangshan produced around 30,000t of antimony oxides in 2018. Its 2019 output is estimated around the same level as the upgrades and maintenance did not affect its oxide production.

The company offered export prices for 99.65pc metal at $5,700 yuan/t ($827/t) fob and concluded a few deals in the past week.

Argus today assessed prices for 99.65pc metal stable from 9 January at Yn35,000-37,000/t ex-works. The range for 99.5pc trioxide held flat at Yn33,000-34,000/t ex-works. Export prices were unchanged at $5,550-5,750/t fob for metal and at $4,800-4,900/t fob for trioxide, in line with the stable domestic prices.

The market is expected to remain inactive in the coming month as suppliers may keep offers firm because of lower spot supplies following the output closures. Consumers will be unwilling to replenish stocks as they have bought sufficient stocks before the lunar new year holidays.