Chinese antimony exports down: report

A new report says official Chinese exports of antimony fell by 67% year-on-year in the first four months of 2001.

The Economics of Antimony 2001 (9th edition), compiled by London-based Roskill Information Services, illustrates the price volatility that has characterized antimony markets in the past year. While prices rose from a 25-year low of US$1,040 per tonne last May to a three-year peak of US$1,900 per tonne last September, prices had weakened to US$1,150 per tonne by May of this year.

China is the world’s largest producer of the metal, accounting for 80% of global production, and the dog that wags the tail in terms of price trends. The potential for price recovery depends on the level of Chinese export quotas, and on the ability of the Chinese government to enforce them. Export quotas for refined antimony were reduced by 20% to 50,000 tonnes in 2001 from 60,000 tonnes in 2000.

Prices below production costs have forced some Chinese producers to lower their 2001 production targets. The report says prices of over US$1,500 per tonne are unlikely to be sustained unless the Chinese government controls output as well as exports.

Demand growth is highly dependent on the flame retardants sector, which accounts for more than 60% of primary antimony consumption worldwide and as much as 90% of antimony trioxide consumption. The introduction of more stringent flammability standards and safety legislation in developed countries, together with increased demand for plastics and technology-related products, will result in higher demand for flame retardants.

The report predicts that global demand for antimony trioxide will rise by 4% per year to 95,000 tonnes in 2003 from about 83,500 tonnes in 1998. However, the U.S. economic downturn may reduce demand for plastic’s raw materials in the U.S., and in Asian countries exporting to America, this year.