SHANGHAI, Oct 13 (SMM) – The domestic output of tin stood at 13018 mt in September according to SMM survey, down 4.7% from August. Several smelters in Yunnan reduced the production significantly, but was largely offset by other companies who were set free from the influence of power rationing. The total output in Yunnan and other major production regions stayed stable as a whole. The decease was mainly contributed by non-mainstream production areas, where the production was affected by power rationing and environmental protection inspection.
The output of tin in October is estimated to be 14650 mt, up 12.54% on the month, with contributions from Guangxi and other non-mainstream production areas as the influence of power rationing and environmental protection inspection eases. Meanwhile, 80% of the production capacity of MSC has recovered according to market news, and the imports are expected to pick up owing to the comparatively low prices of overseas products. To sum up, the supply may rise to some extent in the near future.
On the demand side, the downstream demand increased significantly amid the recent fall in tin prices. On the other hand, the photovoltaic industry has demonstrated more demand for tin solder, and the sector is likely to prosper further on the back of tight power supply after the coal prices surged. The demand of tin solder, which takes up a large share of the total demand, is likely to increase as well.
In general, the tin prices are likely to stay at high levels as the demand and supply will maintain a dynamic balance in the future.
