Time Revisited: Recent Increase in Antimony Smelter Shutdowns [SMM Antimony Market Report]

         SMM June 18 News: According to recent official information, after entering June, a large number of antimony smelters have suspended production, including many domestic flagship smelters. Based on the current operating status of over 30 antimony smelters tracked by SMM nationwide, around 20 have halted production. Coincidentally, a similar situation occurred in the second half of June last year, when more than half of the smelters also suspended production.
         For instance, in south-west China, antimony smelters represented by Yunnan Muli Antimony Industry have fully suspended production. In central China, Hsikwangshan Twinkling Star Antimony Co., Ltd. in Hunan has announced a complete shutdown, including its fine metallurgy plant, with some units undergoing maintenance. The restart date is undetermined, with production planned to resume at least by August or even September, during which no antimony ingots will be produced. Most smelters in Lengshuijiang, Hunan, have also halted production. Many large smelters in other parts of Hunan have either suspended or reduced production. In south China, production has been both suspended and resumed, with smelters such as Guangxi Wanshizhi Rare and Precious Metals having suspended production. Antimony smelters in Guizhou are almost all suspended. Market participants have indicated that the production suspensions are particularly noticeable in Guangxi and Guizhou, possibly due to recent environmental protection measures. In other regions, such as Hubei and Shaanxi, smelters remain in long-term shutdown. Many market participants believe that in the coming period, the number of antimony smelters in China capable of normal operation may be countable on two hands. Although this is a rare situation, it has occurred consecutively in the past two years. Furthermore, based on the production suspension plans of the aforementioned smelters, the time for resuming production remains unclear, and it is expected that the recent antimony production will be significantly impacted. Apart from maintenance reasons, the main cause of production suspensions at some smelters is the lack of sufficient raw materials for smelting. If these smelters cannot purchase a large amount of raw materials in the short term, even if production resumes, output will be limited to a low level. Some market participants have also noted that currently, mine resources are both expensive and scarce, while the selling prices of terminal downstream products are low and difficult to sell. Producers, caught in the middle, are indeed facing significant challenges. Reducing production through maintenance and suspensions may be a better adjustment. Market participants also assess that antimony smelting production in June this year, and even in Q3, may reach new lows.
         For smelters still in operation, some have emphasized that maintaining stable raw material supply and smooth sales are top priorities. During interviews, some smelter representatives also stated that based on recent insights into the national mining and smelting sectors, they remain confident and optimistic about the medium and long-term market trends for antimony. They currently believe that the actual domestic supply is less than the demand. However, end-user demand has significantly reduced procurement volumes and raw material inventories. Nevertheless, they remain optimistic about future rigid demand. Therefore, the current focus is on stabilizing production volumes to ensure there are products available for sale when the market recovers.