SHANGHAI, Jan 5 (SMM) – Tin smelters in Yunnan province are looking to raise the tin concentrate treatment charges (TCs) as high concentrate prices have eaten into their margins.
“We hope TCs could be raised from the current 17,500 yuan/mt to 20,000 yuan/mt for 40% Sn tin concentrate,” a local smelter source told SMM.
With a drop in tin ore exports from Myanmar in 2017, higher labour costs and the new environment tax in China, tin smelters have been under pressure on the cost front.
While local miners in Yunnan also looked set to withhold their TC offers, the approaching Chinese New Year in mid-February may lead some to budge due to cashflow requirement.
Many smelters in the province have low tin inventories as they stopped production in early December due to environmental checks. Tin offers were all heard at above 145,000 yuan/mt this week.
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