Nihon Seiko to Hike Antimony Trioxide Price by 35%

Japanese largest antimony maker, Nihon Seiko announced on Monday the firm increases the selling price of antimony trioxide, which is used as flame retardant of plastic, by 35%. The firm started the negotiation with the buyers to increase the price by 250 yen per kilogram effective on May 1 shipment when antimony ingot price surges due to speculation under supply concern from China. The firm eyes additional price hike depending on the antimony ingot market.

International antimony ingot price is around US$ 9,500 per tonne, which increased by 45% in a month due to supply situation in China when China represents more than 80% of the world production. Antimony smelters in major producing area of Lengshuijiang, Hunan keep stopping the operation when the central government forced to stop the operation under severer environmental regulation. The government tries to consolidate the small sized smelters and shut down illegal operations. Electricity shortage in southwestern China also impacts on the antimony production.

With the supply concern, Chinese exporters try to increase the ingot price. Nihon Seiko recognizes some exporters offer more than US$ 9,500 per tonne. Nihon Seiko tries to pass higher cost price on the oxide price but the firm reflects US$ 9,000 level of ingot price for the price hike. When the ingot price would increase more, the firm could increase the selling price.

International antimony ingot price decreased to US$ 4,000 per tonne level, which was 40% lower than the price before Lehman shock. With the lower ingot price, antimony trioxide price decreased by more than 300 yen per kg. Nihon Seiko started to increase the selling price after the ingot price reached US$ 4,000 per tonne in July 2009. After the series of price hike, the trioxide price exceeds the level before Lehman shock.