Guangxi China Tin Group, the world’s sixth-largest tin producer, recently announced an extended maintenance period for its Laibin smelter on their WeChat channel. The smelter operations have been put on hold for 45 to 50 days, starting from May 27, 2023. This decision, driven by the broader smelter production situation, raw material availability, furnace brick condition, and safety and environmental considerations, is set to impact China’s tin production industry.
As of May 2023, China’s total refined tin production was estimated at 14,400 tonnes, representing an 8.3% month-on-month (MoM) decrease and a 12.2% year-on-year (YoY) decline. This downturn in production, observed across the provinces of Yunnan, Jiangxi, and Guangxi, has been attributed to the tightening of raw materials required for smelting. Guangxi China Tin Group, with an average monthly output of 1,000 tonnes, significantly contributes to this production landscape.
In light of this development, it is projected that China’s domestic refined tin production in June will see a further decline from May’s figures.
The decision by Guangxi China Tin Group comes at a critical junction for the industry. While the operational pause could potentially provide some temporary relief from the intense competition for raw materials the overall impact largely hinges on the current market dynamics of weak demand and surplus supply.
