Chinese Tin Imports Surged MoM in Nov on Rising Tin Price and Falling Processing Fee

SHANGHAI, Dec 21 (SMM) - Chinese tin ore and concentrate imports stood at 26,552 mt in November, surging 135.31% on the month; the cumulative imports totalled 222,399 mt in January-November, up 30.08% on the year.

Myanmar, DR Congo, Australia and Brazil among others are the main supplying countries. The imports from Myanmar stood at 21,996 mt, or 5,499 mt in metal content based on the average grade of 25%; the imports from other countries came in at 4,556 mt, or 2,278 mt in metal content based on the average grade of 50%. The volume of imported tin ore and concentrates in November was about 7,777 mt in metal content. China import volume of tin ore and concentrates in November increased significantly month-on-month. The imports from Myanmar grew significantly from the previous month, with a month-on-month increase of up to 125%, which is basically in line with the previous market rumour of 20,000 mt. Among other major tin concentrate supplying countries, the import volume from DR Congo rose sharply from the previous month and has returned to the monthly average level of the year. The imports from Australia also climbed palpably with a MoM growth of more than 50%. The import volume from other countries remained stable as a whole.

On the supply side, domestic processing fees have remained low. Therefore, when tin price rose, the profits of mines were restored, encouraging the mines to produce. And Chinese imports rose subsequently. On the demand side, domestic smelters maintained relatively high operating rates in November, but the output is likely to fall in December, and some smelters have already reduced or suspended the production. In summary, the smelters are likely to be plagued by the low processing fees and sluggish terminal demand. On the backdrop that the demand for raw materials will contract, the follow-up tin ore and concentrate imports are unlikely to be maintained at the current level.