New official trade data reported by Reuters shows that China’s imports of refined tin and alloys in May were 857 tonnes, 47% lower than in May 2010. Year-to-date imports in the first five months of the year amounted to 3,947 tonnes, 58% lower than in January-May 2010. China’s imports of most other LME metals also fell substantially last month.
Refined tin exports in May were reported at only 75 tonnes, with a year-to-date total of 736 tonnes. However for tax reasons most tin exported from China is classified as a tin product rather than metal ingots. ITRI’s calculations from third countries’ import data indicate that China has exported some 13,000 tonnes of tin since October 2010, as the boom in LME prices relative to domestic levels stimulated arbitrage sales. However the differential between Chinese and LME prices has recently reversed, which we believe will now halt exports and again stimulate imports.
