Buyer's market continues
By Staff -- Purchasing, 3/12/1998
It will be a buyer's market for antimony oxide tags this year, despite a small price spike at the end of the first quarter. Bulk contract prices will range from $1.10/lb to $1.35/lb; spot tags will shift between $1.20/lb and $1.45/lb. Reason for stability: End-use markets and supply of antimony metal from China should remain stable through year-end.Reflecting a general consensus among purchasers, an East Coast buyer estimates prices will hover between $1.10/lb and $1.40/lb this year, but not before tags jump 10cents/lb during February and March. Midway through the first quarter, the buyer reported 98cents/lb contracts from China. Spot tags will remain about 10cents-12cents/lb higher than contracts through 1998.
The downturn in prices is good news, since antimony oxide prices were slightly stiffer in 1997. Spot tags peaked in the first quarter of last year at $1.71/lb. Contracts were higher too, between $1.50/lb and $1.65/lb.
The modest pricing movement is attributed to the availability of the raw material antimony metal for North American and European oxidizers, packagers, and importers. Buyers recognize that politics play a role in China's choices on exporting material. Though antimony oxide is available as a by-product of operations such as silver processing, most end users rely on two Chinese mines that generate the best-quality antimony metal.
Weakening tags further, the supply of antimony oxide is likely to increase as the year unfolds. One Northwest buyer suggests that this flame retardant and plastics additive for ABS (acrylonitrile-butadiene-styrene), polypropylene, and polyurethane will become more plentiful if Asian end-use markets slow down for a while.
On the environmental side, some buyers acknowledge a concern for antimony oxide powder as an airborne contaminant. Those buyers have turned to pellets that are more costly but safer to handle, according to the Northwest buyer.
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