China Minmetals Nonferrous Metals Corp, a subsidiary of China Minmetals Corporation, the country\'s leading metal producer, has bought 1,000 metric tons (tonnes) of antimony oxide from the Hsikwang Shan Twinkling Star Corp this month, the move that analysts say is to boost market confidence amid declining prices.
It is the second time that the China Minmetals Nonferrous Metals has purchased antimony oxide. In March, the company bought 1,000 tonnes of antimony oxide from the Hsikwang Shan Twinkling Star Corp.
"At present, annual capacity of antimony oxide in China stands at about 200,000 tonnes. China Minmetals Nonferrous Metals\'s move will not have a material effect on the antimony oxide prices, but it will likely boost market confidence and stablize the declining prices," the China Securities Journal quoted a sales manager of an antimony enterprise in Hunan province as saying.
Affected by the slowdown in demand in domestic and overseas markets, prices of antimony ingot and antinomy oxide have moved downwards since the second half of last year. At present, the antinomy oxide is quoted at 57,000 yuan/tonne, down 43 percent from a year earlier.
Property and auto industries contribute a lot to antinomy consumption, but their demand for the metal is waning since the start of this year. April and May are traditional peak seasons for antinomy oxide consumption, but this year sales of the metals are not strong as expected, said the sales manager.
Industry insiders noted that it was wise for the China Minmetals Nonferrous Metals to buy antinomy oxide in quantities at a low price.
The move would boost the cash flow of the Hsikwang Shan Twinkling Star Corp and help it clear out abundant stocks.
In the short term, as the traditional peak season has passed, the antinomy prices were likely to move at a low level in the coming months, said the sales manager.
The Hsikwang Shan Twinkling Star Corp, a subsidiary of Hunan Nonferrous Metals Holding Group Co., Ltd which is largely controlled by the China Minmetals Corporation, takes up 30 percent of the country\'s antinomy market.