SMM Data: China’s Refined Bismuth Output In August And Forecast For September

SHANGHAI, Sep 13 (SMM) – According to SMM's research and statistics on bismuth manufacturers in China, the production of refined bismuth in August 2023 was 2,299.893 mt, which once again exceeded 2,000 mt, representing a significant increase of 17.61% compared to July's national production. Looking at the detailed data, out of the 24 surveyed manufacturers by SMM, seven factories were in a state of suspension in August, a decrease of two compared to July. In terms of production changes among manufacturers, eight factories saw a certain degree of increase in output, while four factories experienced a decline. This resulted in an overall increase of 17.61% MoM in refined bismuth production in August. SMM predicts that there is a high possibility of maintaining stable production of refined bismuth nationwide in September, with a slight possibility of a small increase as well.

Overall, despite the increase in refined bismuth production in China in August, the market for bismuth raw materials remains tight. Manufacturers were fiercely competing for bismuth raw materials, and a recent high-priced bid for bismuth concentrate by Shizhuyuan Nonferrous Metal is one of the notable examples. Additionally, Yuguang Gold & Lead recently conducted an open tender for its 200-mt bismuth ingots, and official reports indicate a successful transaction at a price of 59,000 yuan/mt. Many market participants believe that this price is relatively high for a large quantity transaction of 200 mt, instilling strong confidence in the market. After all, the current market is indeed facing a shortage of raw materials, and there is intense competition among manufacturers for these resources. The reduction and suspension of production by several manufacturers in the past two months further support this observation. Coincidentally, market rumors suggest that the tender for over 200 mt of crude bismuth from Shui Kou Shan has also been successfully concluded, with a bidding coefficient as high as 93.81. Market participants indicate that with such a high coefficient, the winning bid would be equivalent to a price of 56,286 yuan/mt. If a 5% quality surcharge is added and converted to refined bismuth, the price could reach as high as 63,000 yuan/mt. This calculation does not include other associated pricing factors, making the price astonishingly high. However, although the accuracy of this conversion method is questionable, the repeated successful bids in the recent bismuth market have brought significant confidence to the market.