Tin Market Weekly News: Operating Rates at SME Solder Processors Up in April, Slumping Tin Prices Threaten Indonesian Exports

SHANGHAI, May 13 (SMM) –

 

SMM conducted a survey of 40 domestic tin solder processors, including 17 small enterprises (monthly purchase volume ≤ 50 mt), 16 medium enterprises (monthly purchase volume between 50 mt and 100 mt), and 7 large enterprises (monthly purchase volume exceeding 100 mt), with 60% located in Guangdong, 30% in Jiangsu and Zhejiang, and the remaining 10% in Hebei, Tianjin, and Shandong.

 

The result of the survey shows that operating rates at tin solder processors edged up in April, which was particularly evident in SMEs, with the rates at large enterprises holding steady. 

 

Tin exports from Indonesia – world’s largest tin exporter – are under threat due to tin prices falling below production costs. 

 

LME tin prices have fallen 13% this year to USD 20,475/mt, as Indonesian smelters aggressively sold goods before the stricter demand on tin purity was implemented. According to Indonesian Tin Association, tin production costs are estimated at USD 22,000/mt.

 

Tin prices have fallen 20% in May compared with the high level seen on January 18 due to market concerns over global economic slowdown. Besides, as new standards for tin quality required lower lead and cadmium content, Indonesia’s tin exports will be further hampered. Hidayat Arsani, president of Indonesian Tin Association, said about 15-20 smelters will be able to meet the requirements.