“Even if the price is low, nobody is buying… the depreciation of the yuan does not stimulate buying interest,” a Chinese trader said. This is because consumers and traders expect future price falls and some buyers have decided not to take positions in May, they told Fastmarkets. Moreover, a weaker yuan gives the perception that Chinese sellers now have more scope to cut their offers.īut in the case of antimony, it has precipitated cheap offers but failed to foster sales. Market participants were hopeful that weakness in the yuan could bolster dollar-denominated exports by offsetting the effect of tariffs on exporters. According to exchange rate website, the yuan was trading at 6.91 to the dollar on Thursday May 30 compared with 6.73 yuan on May 1. The Chinese currency has fallen almost 3% against the dollar since the beginning of May. Weaker yuan lowers producers’ breakeven costsĪ weakening yuan has meant producers in China have been induced to cut offers amid expectations of lower breakeven costs for them. “There is still material in the US but at some point it has to be depleted… and it is yet to be seen how tariffs will be absorbed,” the US trader said, adding that US consumers could try to source material from other countries to avoid the 25% duties, which will put more pressure on Chinese exporters.Ģ. This has caused an oversupply of antimony in the US market which is still being consumed, Fastmarkets reported in November. Last year, large cargoes of antimony were shipped into the US ahead of possible tariffs that in the end never happened. “The threat of new duties is real and it can happen at any time since negotiations are not going well,” a US trader said. But market participants have voiced concerns that this minor metal could be included in the next round of tariffs after US President Donald Trump threatened in May to place the full 25% tariff on a further $325 billion of Chinese goods. Overall market sentiment in China has deteriorated and the country’s antimony suppliers have sacrificed profits to rapidly offloaded stocks, according to market sources.Īntimony has so far been excluded from the final list of products subject to import trade duties. Trade tensions between China and the US have escalated this year, with the latter increasing import tariffs to 25% for $200 billion of Chinese goods on May 10. ![]() Most market participants spoken to by Fastmarkets point to uncertainty surrounding global demand as a result of the continued US-China trade war. ![]() Renewed trade tensions between China and the US Fastmarkets presents the key factors driving the bearishness in the antimony markets.ġ. Fastmarkets’ European and Chinese antimony prices have fallen by more than 15% and 21% respectively in the year to date.
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