Home / Metal News / Tin industry chain is still grappling with logistical constraints

Tin industry chain is still grappling with logistical constraints

iconFeb 20, 2020 18:07
Source:SMM
Tin ore: While cargoes could make declaration at customs, tin ore imports from Myanmar remained disrupted as shipment to the domestic market has yet to recover

SHANGHAI, Feb 20 (SMM) – Transportation restrictions that could constrain raw material procurement and finished goods shipments remained the biggest drag on the recovery of the tin industry chain, the latest SMM survey showed.

 

Tin ore: While cargoes could make declaration at customs, tin ore imports from Myanmar remained disrupted as shipment to the domestic market has yet to recover. That, coupled with quarantine rules on workers back to Myanmar, is expected to prevent tin ore imports from recovering for some time.

 

Smelters: In Yunnan, some of the smelters maintained production, while the others are likely to remain shut till end of February or early March. While some smelters have yet to resume production, their sales have resumed, and quotes were slightly higher than market prices. Some smelters required their clients to take the delivery of cargoes on their own given logistical constraints.

 

In Jiangxi, only a few smelters maintained production during the Chinese New Year holiday. Some resumed production this week, and their quotes and shipments also recovered. But there were some smelters will remain shut until next week. Small brand supply on the market is likely to gradually recover.

 

Downstream: Tin consumers in Guangdong have gradually resumed operations, but operating rates failed to climb to high levels due to manpower shortages and the absence of approvals from authorities. The operating rates are set to increase with more workers returning to work, but the recovery will continue to be subdued by trans-provincial logistical restrictions that will affect raw material procurement and orders.

 

Warehousing: Warehouses that house tin all have resumed normal operations.

 

Logistics: Cargo transportation still faces restrictions between provinces, and manpower shortages have lifted transportation costs.

Coronavirus impact
COVID-19
Tin

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news

SMM Events & Webinars

All