China's Oct antimony shipments plunge on latest export limits
BEIJING, Nov 20 (Reuters) -China's October shipments of antimony products plunged by 97% from September, customs data showed on Wednesday, because of Beijing's latest move to limit exports of critical minerals in which it is the dominant supplier.
The world's largest antimony producer in August unveiled its plan to impose export limits on the critical mineral and its related elements from Sept. 15, "in order to safeguard national security and interests, and fulfill international obligations such as non-proliferation".
China accounted last year for 48% of globally mined antimony, a strategic metal used in military applications such as ammunition, infrared missiles, nuclear weapons and night vision goggles, as well as in batteries and photovoltaic equipment.
Concerns over Beijing's planned export limits saw a rush of stockpiling abroad, boosting rush shipments in August and September.
Beijing exported a mere 190 metric tons of antimony related products in October, versus 6,533 tons in September and 4,034 tons in October 2023.
Some cargoes were left in the Chinese domestic market as exporters awaited export licenses, resulting in more domestic supply which has depressed spot prices, said analysts.
Exporters of affected products must apply for export licenses for dual-use items and technologies - those with potential military as well as civil applications.
China's spot price of antimony ingot slid by 7.5% in October and has fallen by 11.5% from Aug. 15 when Beijing announced its plan for export restrictions to 141,000 yuan ($19,479.17) a ton on Nov. 19, data from information provider Shanghai Metals Market (SMM) showed.
By contrast, prices of antimony ingot in Europe rallied due to tightening local supply.
"Antimony prices in Europe and the U.S. have hit record highs in the wake of China's new export controls and the pre-existing global shortage – surpassing the $30,000/t threshold in October as stocks in warehouses run critically low," said Cristina Belda, an analyst at information provider Argus.
"It is becoming increasingly difficult for western traders to navigate the risks involved in antimony trade. Supply channels have become less reliable and it is unclear how the situation can be improved for western buyers."
In the first 10 months of this year, China's antimony exports totalled 36,103 tons, a drop of 17.2% year-on-year, customs data showed.
($1 = 7.2385 yuan)
Reporting by Amy Lv and Colleen Howe; Editing by Michael Perry
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