United States Antimony Corp (UAMY)

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Antimony sweeps up to 13-year highs, gets closer to $6,000 a tonne
By Martin Hayes - Senior Correspondent, [e-mail] ([phone])

London, 31 January 2008 - Antimony prices surged higher in Europe on Thursday, rising to levels last seen in late 1994, on fears of a first quarter supply famine caused by weather-related production stoppages in China.

Spot metal was quoted around $5,800/5,900 a tonne, up $300, or some 5.4 percent, in the last week.

"Because of the production halt at Hunan, they (producers) are not going to get any metal out this week. When you take the New Year into consideration that's then another week and a half," a trader said.

"Nothing is going to be shipped until second-half February, which means that it will be end-March before you see it in Europe. In all probability the price is going to $6,000," a trader said.

In China, power outages designed to safeguard residential supplies have forced outages at mines and plants controlled by the parent of Hunan Nonferrous Metals. Snow and ice storms across southern and central China have brought the coldest weather in 50 years to Hunan and China's largest antimony producer, Hsikwangshan Twinkling Star Co, has shut operations for over a week.

Inevitable shipment delays in the wake of the Lunar New year holiday are likely to catch out many end-users in Europe, who up to now have been able to adopt a relaxed hand-to-mouth buying policy. The metal, mainly used in fire-retardents, has been ranging around the mid-$5,500s for some months.

"Things are tight on the ground in Europe -- there is not much metal in Rotterdam -- and a few of the major consumers are uncovered," another trader said.

China is the world's major producer of antimony -- accounting for over 80 percent of global output that runs at around 130,000 tonnes annually. Prices of $6,000 were last seen in early 2006, and this is the next overhead objective.

In 1994, antimony metal prices surged strongly, amid shipment delays from China in early spring caused by extensive flooding in major antimony mines and smelters. Production and shipping delays persisted most of the year. with prices hitting levels in the $7,700/8,000 area, before the market tailed back in 1995.
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