London 26/07/2016 - Antimony prices continued a mini bull-run in Europe on Tuesday, straddling the $7,000 per tonne level to stand at their highest since August 2015, as the ongoing closure of the China/Vietnam border underpinned worries over availbility, traders said.
"There is actually very little demand - it is supply-driven as it's (China's) border with Vietnam is shut," a trader said.
Free-market prices stood at $6,800/7,100 per tonne, having edged up from end-2015 levels of $4,900, which were the lowest since July 2009. But the market was some $8,500 at the start of 2015. Prices hit all-time highs of $17,200 per tonne in April 2011.
China is by far the world's largest producer of the metal, which is mainly used as a fire retardant. It's production dropped last year to 115,000 tonnes from 120,000 tonnes in 2014, as it enacted some temporary closures and curtailments on environmental grounds. Global antimony production in 2015 was 150,000 tonnes.
Traders said business is inhibited by worries that contracted shipments from China may not arrive. Material in Rotterdam warehouses can be picked up with certainty at $7,000 per tonne.
However, given that the European consumption outlook is not exciting over the rest of the summer period, there is unlikely to be sustained upside price movement in the medium-term.
"If that border is opened up, a lot of metal will just come flooding out," the trader added.
Also, there is the ever-present threat of the release of stockpiled Fanya Metals Exchange antimony overhanging the market - last month officials in Kunming, where the scandal-hit Fanya exchange is based, found evidence of criminal activity in alleged illegal fundraising.
The Kunming Municipal Public Security Bureau seized assets and capital including more than 70,000 tonnes of non-ferrous metals, of which a significant tonnage - some 19,000 tonnes - is reported to be antimony.
(Editing by Tom Jennemann)