----Interview with Tomohito Saguchi
Director of Overseas Business Department
Kawashima Co.
Kawashima Co. is the head office of Japan Kawashima Group which consists of 38 branch companies, engaging in both domestic and international trade of recycled raw materials for non-ferrous metal , aluminum, zinc, silicon, antimony, bismuth and other metals.
Asian Metal: Welcome to our interview. Please make a brief introduction to the operation and main business of your company.
Mr. Tomohito Saguchi: Founded in 1964 as the head office of Japan Kawashima Group, our company has a history of 60 years to date. Kawashima Group consists of 38 companies engaging in various business, such as the production and sales of aluminum alloys, aluminum coils and other aluminum products, the recycling and processing of non-ferrous metal recycled raw materials, the operation of golf courses, the recycling and regeneration of rare and precious metals as well as the production and sales of elderly mobility scooters and automotive parts. As the head office, our company also engages in domestic and international trade of non-ferrous metal recycled raw materials, aluminum, zinc, silicon, antimony, bismuth and other metals, as well as real estate leasing business, in addition to managing group business.
Asian Metal: We know that Japan is one of major consumers for antimony products in Asia. What areas are the current demand for antimony products mainly concentrated in Japan and what is the current demand situation?
Mr. Tomohito Saguchi: About 80% of the demand for antimony products in Japan is mainly concentrated in flame-retarding industry currently. However, due to weak demand for household appliances and automotive products, both the demand and imports for antimony trioxide, a kind of flame retardant, declined in Japan in 2023. Besides the flame-retardant industry, Japan's demand for antimony products mainly comes from lead-acid battery, electromagnetic steel plate and pigment industries.
Asian Metal: How about the supply of antimony products in the Japanese market?
Mr. Tomohito Saguchi: Producers of antimony products in Japan are mainly divided into two varieties. The first variety includes three producers who import antimony ingot to produce antimony trioxide. Nihon Seiko Co. is one of them with the highest market share. The second variety involves another three producers who produce antimony trioxide, lead-bearing crude antimony, antimony ingot 99.5%min and other antimony by-products when smelting non-ferrous metals. Both of the lead-bearing crude antimony and antimony ingot 99.5%min are mainly sold to lead-antimony smelters in Japan as raw materials of lead–acid batteries.
Asian Metal: With the diversified development of antimony supply in the international market, what are the changes in the development of antimony import market in Japan?
Mr. Tomohito Saguchi: The supply of antimony products to the local market in Japan is mainly dependent on imports. Japan's antimony demand has been in decline since 2021. Japan's imports of antimony ingots in 2023 were 4,695t, down by 10.4% from 2022 and 14.1% from 2021. Most of the products were imported from China, but the proportion of imports from China is also declining year by year, from 48.8% in 2021 to 43.3% in 2023. Apart from China, Japan mainly imports antimony ingot from Vietnam, Thailand and South Korea, of which Thailand's imports (non-Myanmar antimony ingot) has risen from the fourth place in 2021 (accounting for 7.7%) to the second place after China in 2023 (accounting for 23.5%). At the same time, the import volume of antimony trioxide is also rapidly decreasing. In 2023, the import volume of antimony trioxide was 3,319ts, a decrease of 23.1% from 2022. Antimony trioxide is mainly imported from China, and the proportion of imports from China is relatively stable, which has been maintained at about 80% in recent years. The remaining 20% is imported from Belgium and Thailand.
Asian Metal: With the rapid development of the global new energy field, what is the current development status of antimony products in the Japanese market?
Mr. Tomohito Saguchi: The current demand for antimony products in the field of new energy in the Japanese market is mainly concentrated in the electromagnetic steel plates used in new energy vehicles. A small amount of antimony metal is added to some electromagnetic steel plates, and steel companies in Japan have gradually expanded the production capacity and output of electromagnetic steel plates in recent years. In the photovoltaic industry, the photovoltaic panels that Japan once produced in large quantities also have certain demand for sodium pyroantimonate which is regarded as a clarifier of photovoltaic glass. However, in recent years, most of Japan's photovoltaic panels have relied on imports, and the demand for antimony products in the domestic photovoltaic industry in Japan has been very low.
Asian Metal: In Q1 and Q2, the price of antimony products soared by 80%, what do you think are the main factors affecting the rapid rise of antimony products?
Mr. Tomohito Saguchi: The price of antimony products skyrocketed in mid-April. I believe the following factors have contributed to the current rapid rise in prices. Firstly, US sanctions have had some impact on the import of Russian antimony ore. From January to May this year, in addition to the import of more than 270 tons of antimony concentrate from Russia in February, the import of Russian antimony ore in other months is basically zero. In recent months, there has been basically no import of gold-antimony ore from Russia. Secondly, the demand for photovoltaic industry remains strong. Although the growth rate of new photovoltaic installed capacity is expected to be lower than that last year, the demand for antimony products in the photovoltaic industry still maintains a considerable growth. In addition, when prices began to surge, some speculative funds flowed into the market, leading to increased buying of antimony products, so prices fluctuated up to historic highs. Furthermore, in April and May, imports of antimony ore from Myanmar slumped, which is another major reason for the recent surge in antimony prices. There was also pressure from the environmental protection inspections in Hunan Province in May when some smelters stopped or reduced production, leading to tighter supply of antimony products. At last, given the growing demand from the photovoltaic industry, as well as the gradual reduction in the supply of antimony mineral resources, it is a consensus that antimony will remain in short supply in the long term, which shored up major smelters' confidence in lifting price up, and in view of the supply shortage of antimony resources, end users with real demand would have to accept the price hike.
Asian Metal: What are your future plans for the international business of your main products?
Mr. Tomohito Saguchi: In view of the growing demand for antimony products in China, it is possible that China will shift from an antimony ingot exporter to an antimony ingot importer in the future, so we will expand purchasing channels for antimony products outside China in the future. As for business of other metals, we are also planning to further expand purchasing channels of recycled raw materials for non-ferrous metals and precious metal, and at the same time increase the purchase and sales types of metal ingot products.
Asian Metal: Thank you for the wonderful sharing. We wish your company a prosperous business and greater success.
