Antimony oxide prices climb relentlessly. (Your Business In Brief).

The past year held bad news for compounders and users of flame-retardant plastics. Great Lakes Chemical Corp. in Indianapolis and Dallas-based Laurel Industries, div. of Occidental Chemical, have issued at least six price hikes for antimony trioxide and other antimony-based synergists since March. The increases have grown steadily larger--from 7Cents/lb in March to 50Cents/lb for the latest hikes, which were effective in October and November. These increases add up to $1.22/lb. Similar actions have been taken by two European-based suppliers, Campine and SICA. Further price increases are likely through the second quarter of 2003.

This surge in prices is linked to the run-up in prices of antimony metal. Since January, the metal's world price has soared 290%, reflecting the impact of several mine and smelter shutdowns in China, following accidents and flooding at major locations in two provinces. China is the world's primary source of antimony metal. A similar scenario occurred in 1994, when the price of antimony metal skyrocketed to nearly twice today's level.

Says Bill Neagle, v.p. of business management for Great Lakes Chemical, "The amount of metal and antimony oxide coming out of China has been significantly reduced. Thus far, the raw-material shortage has not affected finished product [antimony oxide], although the material's supply has become tighter as the Chinese stockpiles of raw material have been depleted." Great Lakes has diversified its raw-material sourcing through a joint venture in South Africa and other sources in that region. Up to now, Neagle says, potential sources of antimony metal in Australia and Russia have not proved economically viable, though that may change if the price remains high enough. Antimony oxide prices are not expected to subside until some of the large mines in China reopen, which could come in the second quarter of 2003.