Recently, we learned from official news that since June, a large number of antimony smelters have stopped production, including a large number of domestic flagship factories. According to the operation status of more than 30 antimony smelters tracked by SMM nationwide, about 20 of them are in a state of suspension. Coincidentally, in the second half of June last year, a large number of antimony smelters also stopped production, and more than half of them stopped production at that time.
For example, in the southwest region, antimony plants represented by a certain antimony industry in Yunnan have all stopped production. In the central region, a large antimony plant in Lengshuijiang, Hunan has announced that all operations, including the fine metallurgical plant, have been suspended, and some have entered maintenance. The start time of the furnace is not yet determined, and it may be until August or even September. During this period, antimony production will be affected. Most other factories in Lengshuijiang, Hunan have stopped production.Many large factories in other parts of Hunan Province have also stopped or reduced production. In South China, some factories have stopped production while others have resumed production. For example, a rare metal factory in Guangxi has stopped production. Antimony smelters in Guizhou Province have almost all stopped production. Some market insiders said that the current suspension of production is more obvious in Guangxi and Guizhou, which may also be caused by recent environmental protection reasons. In other regions, such as Hubei and Shaanxi, smelters are still in a long-term shutdown state.
Many market participants said that in the coming period, the number of antimony smelters that can operate normally in China can probably less than 10. Although this is a rare situation, it has occurred continuously in the past two years. And judging from the suspension plans of the above manufacturers, the time for resuming production is not clear, and it is expected that the impact on the recent antimony production will be large. In addition to maintenance reasons, the main reason for the suspension of production of some manufacturers is that there is no sufficient raw material for smelting production. If these manufacturers cannot purchase a large amount of raw materials in the short term, then even if they resume production, the output will be limited to a low level.
Some market participants also said that the current mining resources are expensive and scarce, while the terminal downstream products are cheap and difficult to sell. The production enterprises are really in a very uncomfortable situation in the middle. Maintenance and shutdown may be a better adjustment. Market participants also estimated that the antimony smelting output in June this year and even in the third quarter may hit a new low.
At present, for the manufacturers that are still in operation, some of them said that the top priority is to maintain the stability of raw materials and sales. In the interview, some manufacturers also said that through the recent understanding of the national mines and smelting links, they are still confident and optimistic about the medium- and long-term market trend of antimony. At present, it is believed that the actual supply in China is less than the demand, but the terminal demand has suppressed the purchase volume and the raw material inventory too much, but the rigid demand is still optimistic in the future, so the current production volume must be stabilized and the market will pick up to ensure that there is something to sell.