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Minor metals to perform well amid traditional restocking
Dec 4, 2020 13:15CST
Source:SMM
Prices of minor metals are expected to improve after experiencing the downturn after the Covid-19 pandemic.

SUZHOU, Dec 4 (SMM) – Prices of minor metals are expected to improve after experiencing the downturn after the Covid-19 pandemic.

“At present, prices of minor metals is basically in line with the forecast, and the prices of antimony, bismuth, indium, and gallium have increased significantly. As the traditional restocking is peaking this will provide support to the prices, and we expect the minor metals sector to perform well in the future,” said Paton Huang, senior analyst of SMM’s minor precious metals research.

Huang was speaking on the 2020 recap and the 2021 outlook of antimony, bismuth, indium and gallium to local and international delegates today at the Shanghai Metals Market's 2020 Nonferrous Metals Industry Chain Annual Conference held in Kempinski Hotel at Suzhou, China.

The influencing factors on the supply of minor metals include shortage of raw materials, reduction of imported raw materials, high domestic ore prices and reduced supply. “ We believe that the current production cost of metals such as antimony and bismuth has been close to the market prices, especially antimony.

“In fact, service is a key factor in the industry chain. Without profits, there will be no service. Hence profit is the guarantee of service. Therefore, enterprises should not be feeling guilty on making reasonable profits. Under the cost support, the prices of antimony and bismuth are likely to increase.” Huang commented.

On the demand side, Huang thinks that demand of minor metals is likely to remain stable, and the downstream sector will become market focus.

 “The data released by major economies continue to perform well, especially for China. Moreover, due to the Covid-19, a large number of end-user manufacturing orders have been transferred to China, and the original manufacturing orders have returned to China, and China has once again restored its status as the world's manufacturing and processing hub,” Huang said.

“We are also confident in the recovery of the global economy. Risk aversion has declined. The US dollar index remains low, which is beneficial for minor metals. While global liquidity has not yet contracted, rising inflation expectations have also laid the foundation for maintaining strong prices of minor metals. With the approaching of the peak restocking season before the New Year, prices of minor metals will receive some support.”

antimony
bismuth
gallium
2020 Nonferrous Metals Industry Chain Annual Conference
minor metals

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