The standoff between Chinese antimony suppliers and Western buyers continued last week. Chinese exporters were clinging to their price of $10,000 per mt, although Western traders were certain they could purchase metal below $10,000 with a firm offer. Traders are not rushing to test Chinese prices because consumers are interested in receiving quotes for forward delivery only. “The key is demand,” said a trader. “No trader is going to risk buying Chinese antimony until he has a buyer lined up, and the consumers are waiting as long as possible to commit.”The Chinese strategy of closing mines and smelters to shore up the antimony price makes sense, according to one analyst, as long as there is the prospect of demand reviving. Without sales, Chinese suppliers may lose their resolve. For now, the Chinese are a united front, but some European suppliers reportedly are selling at rock bottom prices creating stiff competition for traders.

 

US antimony prices remained unchanged at $4.70-4.73 per lb, mostly because the spot market was inactive. Traders agree that any new business is likely to be done at under $4.70.

 

Spot bismuth prices were steady at $8.50-8.60 per lb, with sales done near the top of the range.

 

Selenium prices softened further to $27.50-30 per lb compared to $29-31. Contract sales of chemicals and pellets are steady, one supplier said, but he has lost out to aggressive sellers in the spot market.

 

After holding its indium prices unchanged in April and May, Japan’s Dowa Electronics Materials lowered its domestic 99.99 In price by ￥1,000 ($10.06) per kg on June 1 to ￥53,000 ($533.02) per kg for major users and ￥58,000 ($583.31) per kg for medium/minor users.

 

Chinese indium prices continued to increase last week, driven once again by speculative buying. Spot prices rose to 3,880-3,950 yuan per kg ($634-645), VAT included, compared to 3,800-3,850 yuan per kg the previous week. A producer in Hunan province sold 600 kg at 3,900 yuan ($637) per kg early in the week and then raised its offer to 3,950 yuan per kg. Another Hunan producer also sold one mt at 3,900 yuan per kg.

 

With many Chinese indium producers already sold out for the month, some traders expect prices to breach the 4,000 yuan ($654) mark this week. In contrast to the investor enthusiasm for indium in China, end-user demand remains flat. The stock level at the Fanya Metals Exchange already is at 1,000 mt, which is equivalent to more than two and a half years of China’s total output.

 

In the West where there is no speculative bubble, spot indium prices fell to $515-530 per kg compared to $520-540, based on some small transactions.