China to Impose Export Controls on Antimony Products

(Reuters) – China will impose export controls on some antimony products starting September 15, citing national security. This adds to measures already imposed by Beijing since last year to limit shipments of strategic minerals.

What is Antimony and What is it Used For?

Antimony is a shiny grey metalloid known since ancient times for its medicinal and cosmetic uses. Its primary application today is as a flame retardant, accounting for around half of global consumption in 2023, per brokerage CICC.

About 20% of antimony is used to produce photovoltaic glass, enhancing solar cell performance. The remainder is primarily utilized in lead-acid batteries. Antimony’s strategic significance has increased due to its applications in military equipment, such as infrared missiles and night vision systems, and as a hardening agent for ammunition and tanks.

The most commonly mined ore is stibnite, which contains antimony and sulfur. Antimony can also be a byproduct of gold mining or recovered from recycling lead-acid batteries.

What Are China’s Restrictions?

China’s new export limits apply to antimony products, including ore, ingots, and oxide. Exporters will need to apply for licenses for dual-use items and technologies—items with potential military and civilian use—with a processing period typically lasting two to three months in China.

The regulations also forbid the export of gold-antimony smelting and separation technology without permission. While there are no volume limits, previous curbs suggest that antimony exports will likely decline once these restrictions take effect.

Chinese exports of gallium and germanium, which have faced similar restrictions, have dropped as some exporters struggled to obtain licenses, and some foreign buyers hesitated to disclose end-use information.

What is China’s Role in the Antimony Market?

China is the largest producer of antimony, contributing 48% of global mine production in 2023, trailing only Tajikistan at 25%, according to USGS data. Major reserves of antimony in China are located in Guangxi, Hunan, and Gansu provinces.

Additionally, China is the leading producer of processed antimony, such as antimony trioxide (ATO), traditionally used in flame retardants and increasingly as a clarifying agent in solar glass.

Consultancy Project Blue highlights that while China was previously the top exporter of antimony ingots with 99% purity, domestic consumption has surged due to increased solar cell production.

Statistics reveal that China’s exports of unwrought antimony, including ingots, fell 45% year-on-year in the first half of 2024, dropping to 1,694 metric tons.

As a result, European ATO refiners have sought alternatives from Tajikistan, Vietnam, and Myanmar, while U.S. buyers have primarily turned to India for sourcing.

Why is Antimony Supply So Tight?

Current known antimony reserves could meet global demand for around 24 years, which is less than rare earths, lithium, and other metals, though slightly more than silver. The production from China has decreased from 61,000 tons in 2020 to 40,000 tons in 2023 due to declining ore grades and stricter environmental regulations.

Despite being a primary ore producer, China remains a net importer of antimony concentrates, relying on imports from countries like Thailand, Myanmar, and Russia. Although Russia was once a significant supplier, this year’s production cutbacks, particularly from the major producer Polyus, have heavily curtailed exports.

As stated by Christopher Ecclestone, a principal mining strategist at Hallgarten & Company, “There is no pipeline of supply to turn on.” China dominates ATO production globally, with over 70% market share since 2022, according to Project Blue.

Outside of China, processing capacity remains limited. Perpetua Resources, which aims to commence production of antimony and gold with U.S. military backing, is exploring faster production methods due to Chinese restrictions.

The market remains constrained as demand rises from both the solar and military sectors. In May, Project Blue estimated a supply deficit of 10,000 tons, which could grow with the new restrictions.

Impact on Prices

Antimony prices are already at record highs. Chinese antimony with 99.65% purity traded above $22,000 per metric ton by late July. In China, antimony of 99.91% purity reached a record price of 162,500 yuan ($22,657.24) per ton recently.

Industry analysts predict prices could rise an additional $8,000 per ton to $30,000 as buyers outside China aim to stockpile resources in light of the new export restrictions. As a result, shares of Chinese antimony producers rose by 10%, and Perpetua’s shares surged nearly 24% to their highest level in over three years.