China's announcement on Thursday to impose export controls on certain antimony products, effective from September 15, underscores the critical role this mineral plays in various global industries. The new measures, justified by Beijing as necessary for national security, add to a series of restrictions on strategic minerals implemented over the past year.
The Role of Antimony in Modern Industries
Antimony, a metalloid with a long history dating back to ancient times when it was used in medicine and cosmetics, has become increasingly significant in modern applications. Today, its most prominent use is as a flame retardant, accounting for about half of global consumption in 2023, according to brokerage CICC. Additionally, antimony plays a crucial role in the production of photovoltaic glass, enhancing the efficiency of solar cells, and is widely used in lead-acid batteries.
The metal's strategic importance has grown due to its application in military technology, including infrared missiles, nuclear weapons, night vision goggles, and as a hardening agent for bullets and tanks. The most commonly mined form of antimony is stibnite, which also contains sulfur, and it can be a byproduct of gold mining or recovered from recycling lead-acid batteries.
China's New Restrictions and Their Implications
The newly imposed Chinese export controls target antimony products such as ore, ingots, and oxide. Exporters will need to apply for licenses for dual-use items and technologies—those with both military and civilian applications—a process that typically takes two to three months. The regulations also prohibit the export of gold-antimony smelting and separation technology without specific permission.
While the restrictions do not set specific limits on export volumes, industry experts expect a decline in antimony exports following the enforcement of these controls. This mirrors the impact of similar restrictions on other strategic minerals like gallium and germanium, which saw significant reductions in exports as Chinese companies struggled to secure licenses and overseas buyers hesitated to disclose the end-use of the materials.
China's Dominance in the Antimony Market
China's dominance in the antimony market is evident, as it accounted for 48% of global mine production in 2023, followed by Tajikistan with 25%, according to U.S. Geological Survey (USGS) data. China's antimony reserves are concentrated in the provinces of Guangxi, Hunan, and Gansu, and the country is also the leading producer of processed antimony, including antimony trioxide (ATO), a key component in flame retardants and solar glass.
Despite being the largest producer, China is a net importer of antimony concentrates, relying on supplies from countries like Thailand, Myanmar, and Russia. However, Russian exports to China have dwindled due to declining production and increased export duties, further tightening global supply.
Tight Supply and Rising Prices
The supply of antimony is under pressure due to limited known reserves, which are expected to meet global demand for only about 24 years, according to USGS data. China's antimony production has also declined, dropping from 61,000 tons in 2020 to 40,000 tons in 2023, due to decreasing ore grades and stricter environmental regulations.
The market has already seen the effects of these supply constraints, with antimony prices reaching record highs. By the end of July, Chinese antimony of 99.65% purity traded at over $22,000 per metric ton, with further increases expected as buyers outside China look to secure additional supplies in light of the new restrictions. Industry analysts predict prices could surge by another $8,000 per ton, pushing them to $30,000 per ton by the end of the year.
Global Repercussions
The new export controls have also had a significant impact on the stock market, with shares of Chinese antimony producers rising by up to 10% on Friday. In the United States, shares of Perpetua Resources, a company developing a U.S. antimony and gold project with Pentagon support, soared nearly 24% to their highest level in over three years.
The tightening supply and rising demand from sectors like solar energy and the military suggest that the global antimony market will remain under pressure, with prices likely to continue their upward trajectory as buyers scramble to secure this increasingly strategic mineral.
(Source:www.reuters.com)
The Role of Antimony in Modern Industries
Antimony, a metalloid with a long history dating back to ancient times when it was used in medicine and cosmetics, has become increasingly significant in modern applications. Today, its most prominent use is as a flame retardant, accounting for about half of global consumption in 2023, according to brokerage CICC. Additionally, antimony plays a crucial role in the production of photovoltaic glass, enhancing the efficiency of solar cells, and is widely used in lead-acid batteries.
The metal's strategic importance has grown due to its application in military technology, including infrared missiles, nuclear weapons, night vision goggles, and as a hardening agent for bullets and tanks. The most commonly mined form of antimony is stibnite, which also contains sulfur, and it can be a byproduct of gold mining or recovered from recycling lead-acid batteries.
China's New Restrictions and Their Implications
The newly imposed Chinese export controls target antimony products such as ore, ingots, and oxide. Exporters will need to apply for licenses for dual-use items and technologies—those with both military and civilian applications—a process that typically takes two to three months. The regulations also prohibit the export of gold-antimony smelting and separation technology without specific permission.
While the restrictions do not set specific limits on export volumes, industry experts expect a decline in antimony exports following the enforcement of these controls. This mirrors the impact of similar restrictions on other strategic minerals like gallium and germanium, which saw significant reductions in exports as Chinese companies struggled to secure licenses and overseas buyers hesitated to disclose the end-use of the materials.
China's Dominance in the Antimony Market
China's dominance in the antimony market is evident, as it accounted for 48% of global mine production in 2023, followed by Tajikistan with 25%, according to U.S. Geological Survey (USGS) data. China's antimony reserves are concentrated in the provinces of Guangxi, Hunan, and Gansu, and the country is also the leading producer of processed antimony, including antimony trioxide (ATO), a key component in flame retardants and solar glass.
Despite being the largest producer, China is a net importer of antimony concentrates, relying on supplies from countries like Thailand, Myanmar, and Russia. However, Russian exports to China have dwindled due to declining production and increased export duties, further tightening global supply.
Tight Supply and Rising Prices
The supply of antimony is under pressure due to limited known reserves, which are expected to meet global demand for only about 24 years, according to USGS data. China's antimony production has also declined, dropping from 61,000 tons in 2020 to 40,000 tons in 2023, due to decreasing ore grades and stricter environmental regulations.
The market has already seen the effects of these supply constraints, with antimony prices reaching record highs. By the end of July, Chinese antimony of 99.65% purity traded at over $22,000 per metric ton, with further increases expected as buyers outside China look to secure additional supplies in light of the new restrictions. Industry analysts predict prices could surge by another $8,000 per ton, pushing them to $30,000 per ton by the end of the year.
Global Repercussions
The new export controls have also had a significant impact on the stock market, with shares of Chinese antimony producers rising by up to 10% on Friday. In the United States, shares of Perpetua Resources, a company developing a U.S. antimony and gold project with Pentagon support, soared nearly 24% to their highest level in over three years.
The tightening supply and rising demand from sectors like solar energy and the military suggest that the global antimony market will remain under pressure, with prices likely to continue their upward trajectory as buyers scramble to secure this increasingly strategic mineral.
(Source:www.reuters.com)
