Official non-ferrous metals production figures published by China’s National Bureau of Statistics today showed that tin was again the only major metal for which a fall in output was reported. April production of refined tin was 11,703 tonnes, 10.5% lower than in the same month of 2007, while cumulative production in the first four months of this year, at 42,183 tonnes, was 11.9% down. Chinese production of other LME metals has been running roughly 5 – 20% higher than last year.
The decline in tin production was partly due to extreme bad weather in January-February, but also reflects a continuing shortage of concentrates and scrap for smelters. However the recent earthquake in Sichuan has not had any impact on tin operations.
Despite the fall in production, tightness in the Chinese refined tin market has eased considerably since March. Domestic spot prices (including duty and VAT) are currently quoted at around RMB 159,000/tonne (US$22,780/tonne), significantly lower than the recent record LME values.
