China maintains its dominance over the global antimony trade

2024-09-15 22:48:24

After germanium, gallium, and graphite, Beijing has tightened its antimony export rules since September 15. The silver-gray, fire-resistant metal, as popular with the auto industry as the defense sector, has seen its prices rise. up from the announcement in mid-August of new Chinese measures.

In the family of essential minerals, it isantimony which is now in Beijing’s focus. Officially, this is about keeping prices low for Chinese innovations. But the tougher export rules are also seen as a response from Beijing to US trade measures that seek to prevent China from gaining the upper hand in the production of high-quality organic chips.

Resistant to heat and fire, antimony is used in the automotive industry – to make brick pads and lead batteries -, in the clean energy sector – to increase the transparency of the protective glass for solar cells and therefore their performance -, and in of the Securitywhere it is used in the composition of military equipment.

$25,000 per ton

It is a strategic mineral in many ways and this explains the movement in prices. They almost doubled between January and July, due to a global shortage. This is estimated at 10,000 tonnes in June, according to the consultancy firm Project Blue. ” Since 2010, China has faced mining problems, including declining reserves and grades, and significant environmental impacts. », specify the authors of the Cyclops 2024 report on raw materials. Entering into power restrictions continues to inflame prices. On the spot market, they reach $25,000 per ton.

The fear of importers is that China’s decision will further widen the gap between supply and demand. The country is the largest producer and provides almost half of the world’s supply, after Tajikistan and Turkey. It also has the largest antimony reserves in the world to date, according to the United States Geological Survey (UGS) and also dominates the refining sector.

Export restrictions have limited effect

The problem that took over the market caused the mining shares to rise: according to Money Timesthose of Hunan Gold Corporation, one of the largest producers of antimony, have gained 35% this year. Those of Perpetua Resources, which is awaiting approval of a new gold and antimony mine project in the United States, increased to the highest level in more than three years.

The good news for all buyers is that China has finally not limited its exports much since the implementation of its new restrictive policy on essential minerals in 2023. Bloomberg Companywhich depends on the Chinese culture, sales of gallium in particular, but also to a lesser extent of germanium and graphite, have returned to normal levels.