China antimony curbs will keep market tight - Canada producer

17 December 2010 17:47  [Source: ICIS news]

TORONTO (ICIS)--China’s curbs on antimony production are squeezing supplies and boosting prices, a Canadian miner said on Friday.

“China has tightened up supply quite dramatically over the year,” said Brad Mills, CEO of Toronto-based antimony and gold miner Mandalay Resources.

“There’s a clear desire in China to consolidate the [antimony] industry into the hands of three or four major players,” he said in a briefing on Canadian business television.

Also, China had put in place policies to restrict exports of rare earths and other resources it saw as “unique”, he added.

At the same time, global demand for antimony, a chemical element used in flame retardants, electronics and many other applications, was rising. The combination of tight supplies and rising demand prompted prices to double this year to around $12,000/tonne (€9,120/tonne), Mills said.

While supplies from China were not expected to increase, high prices should encourage more production of antimony in other regions, he said.

Mandalay, for its part, had recently restarted a 2,000-3,000 tonne/year antimony mine in Australia, Mills added.

The US Department of Energy (DOE) warned this week that a broad range of US advanced energy technology developments as well as conventional petroleum refining could be disrupted by a looming shortage of rare earths.

Meanwhile, in Germany, industrial producers said they feared they may soon be cut off from supplies of key raw materials such as indium or gallium altogether amid a worsening raw material supply squeeze.

($1 = €0.76)

To discuss issues facing the chemical industry go to ICIS connect

By: Stefan Baumgarten
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly