Tin Price Gets a Boost from Tin Smelters Closures in Gejiu, SMM Reports

SHANGHAI, Jul. 27 (SMM) – Tin price held unchanged on July 26 when other metals increased, but soared on July 27, while other metals fell back. SHFE 1709 tin, breaking through range level from late February, grew 1.95% to 150,320 yuan per tonne on Thursday, the highest level from February 27.

A paper from Gejiu broke the peace in tin market.

Tin Smelters in Gejiu Halt Output on Environmental Factor, SMM Reports

SMM learned that 6 tin smelters in Jijie, Shadian, Xicheng and Datun were called to halt output from July 26 for a week to August 1 with sulfur dioxide exceeding standard in air. Those closed smelters include Yunnan Chengfeng Non-ferrous Metals, Gejiu Zili Mining & Metallurgy, Gejiu Nonferrous Metal Processing, Gejiu Yunxin, Gejiu Kaimeng and Gejiu Jinye Mineral. Only Yunnan Tin held normal production in the region. Output resumption date at those smelters will be decided by result of environmental monitoring.

However, refined and electrolytic workshops at some smelters were not affected, as pollution was mainly from crude smelting workshops. This, coupled with short output suspension time, may make limited impact on tin supply.

Tin Supply Tightens Not Because Rising Downstream Demand, SMM Notes

After releasing of the news, LME tin hit a half-year high and SHFE 1709 tin surged above 15,000 yuan per tonne. In combination of weak US dollar index and positive economic data from China, base metals increased recently, and LME tin and SHFE tin both outshined. In China’s spot market, discounts of spot tin also narrowed on Thursday due largely to tight tin supply of Yunnan Tin and other small brands.

Closures of large tin smelters in Yunnan will allow tin price to stay firm in a short term, and SHFE 1709 tin will challenge 152,000 yuan per tonne.

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