SHANGHAI, Mar. 4 (SMM) – London Metal Exchange tin inventories soared to 9,085 tonnes on March 3, up 1,020 tonnes from the previous trading day, with all the increases seen in Asian warehouses, according to the exchange data.
On the same day, tin inventories rose by 945 tonnes from a day earlier to 1,690 tonnes at LME-registered warehouses in Singapore. The sharp growth might be contributed by growing exports from China, SMM believes.
Recently, prices in China’s domestic tin spot market rose with LME tin prices, but gains were comparatively smaller, creating a discount of 35,000 yuan ($5,709) per tonne. Such a big gap promoted export enthusiasm, allowing outbound shipments to grow.
SMM learnt that illegal tin exports were reported from Guangdong recently to dodge a 10% export tax.
LME tin inventories had been falling from 15,000 tonnes last November to 8,000 tonnes recently, a drop of nearly 50%.