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Message: Antimony in Demand - China's production down - has obvious U.S. implications

10-07-16 16:32 (UTC)

LONDON, July 16 (Reuters) - Many minor metals slipped over

the last week due to the summer slowdown, although toxic metal

antimony rose on persistent supply worries from top producer

China.

Minor metals demand is slowing in Europe as many factories

and consumers close for the summer holiday season, with business

due to pick up around late August.

Bucking the trend, antimony grade 99.65, used as a

fire-proofing ingredient, rose to about $8,725 a tonne from

$8,200 a tonne last week.

'Antimony has been rocketing up,' said one trader. 'Seems

that out of nine factories in Hunan province, eight had to close

for pollution problems.'

The silvery-white metal soared to a record high at $9,550 a

tonne in early May after an environmental and health and safety

crackdown in the Hunan province in top producer China.

But the volatile metal had eased back in recent months, with

mixed reports coming from China, which contributes around 90

percent of world output.

'Antimony offers are through the roof,' said another trader.

'I heard $9,500 (offers) from the Chinese this morning.'

Aluminium byproduct gallium, used in

optoelectronic devices such as light-emitting diodes (LEDs)

traded at its highest level since mid-January 2009 at about $500

a kg from around $475 a kg the week before.

'There is not much material available, one of the big

producers decided not to sell therefore all the chain became

extremely tight,' said one trader.

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