Chinese Refined Tin Output Adds 7.52% MoM in Feb and to Grow Further in Mar

SHANGHAI, Mar 9 (SMM) - Chinese refined tin output was 12,892 mt in February, up 7.52% MoM and 5.98% YoY. The total output from January to February dipped 3.39% on the year. 

Some smelters suffered raw material shortage. In terms of regions, the output of smelters in Yunnan and Jiangxi dropped from the previous month. The tight raw material supply and low TCs squeezed the profit margins of smelters. The actual production of smelters in Yunnan and Jiangxi varied, and the output of smelters with higher production capacity declined more significantly. The equipment maintenance also affects the actual production in February and the output forecast in March. Other smelters maintained stable production. The production ramp-up of some smelters failed to make up for the output losses caused by production cuts. 

In March, the tight raw material supply and the falling TCs may further suppress the profits of smelters. On the other hand, tin prices continued to fall, and the recovery of orders was slower than expected, resulting in a stronger wait-and-see sentiment among downstream sectors, thus the spot trading was slack. Some Chinese smelters have lowered their expected output, and some are about to end their maintenance. The refined tin output will grow MoM in March to 14,200 mt.