By Anjana Anil and Ashitha Shivaprasad
(Reuters) – Antimony costs are more likely to hit file highs as customers search for different provides following China’s newest export ban and rising commerce tensions altering the dynamics of markets for crucial supplies.
Last month, China banned exports of key minerals akin to gallium, germanium and antimony to the United States.
Prices for antimony, utilized in semiconductors and navy functions, have reached all-time highs, presently buying and selling between $39,500 and $40,000 per tonne in Rotterdam as of Dec. 31. Prices have elevated by about 250% in 2024.
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Traders count on costs to high $40,000 a tonne following the ban imposed by China amid an ongoing world provide scarcity.
“We have already bought some small portions for $40,000,” mentioned a smaller metals dealer in Europe. “Non-Chinese sellers…will cost extra to maximise earnings.”
According to knowledge from the US Geological Survey (USGS), final yr China produced almost 50% of world antimony provides estimated at 83,000 tonnes.
Traders mentioned China’s bans are consistent with a technique to consolidate mining manufacturing domestically.
“The U.S. has already diversified its provide chains away from China the place attainable, shopping for extra from Southeast Asia,” mentioned Ellie Saklatvala, head of nonferrous metals pricing at Argus. “However, it’s unclear within the brief time period how they are going to have the ability to shut the hole left by China.”
China has additionally banned exports of gallium and germanium to the United States, however this may have restricted impression because the United States has stopped buying these crucial minerals from China.
“However, markets are made up of individuals and never simply fundamentals, so some bullish stress is anticipated as merchants exploit the ban to push costs larger,” mentioned Theo D. Ruas, Global Sales Manager, Metals & Compounds at Indium Corporation .
“The Chinese ban on uncooked supplies exhibits how vital further provide exterior of China is. Being self-sufficient should be a short-term aim for the US authorities.”
China’s dominance in crucial minerals has fueled concern over which different metals could possibly be flagged for the following spherical of export restrictions. One dealer mentioned China could goal bismuth and manganese.
(Reporting by Anjana Anil, Ashitha Shivaprasad, Sherin Varghese and Anushree Mukherjee in Bengaluru; Amy Lv in Beijing; Editing by Pratima Desai and Ed Osmond)
