Chinese exports of refined tin jumped to 4,538 tonnes in March, according to official customs figures released today. This was the highest monthly total since June 2004.
As with the previous peak, the high level of shipments last month is believed to reflect the attractive differential between LME and domestic prices. In announcing its first quarter results last week, China’s largest tin producer Yunnan Tin reported that export prices in the period rose 60% while domestic prices increased by only 23%.
Exports in the first quarter of the year rose by 90% to 8,079 tonnes, while imports fell sharply in the quarter to 1,250 tonnes. The fall in imports mainly reflects reduced re-refining of Indonesian tin.
Arbitrage selling may result in large exports again in April, but growing domestic consumption is likely to cut volumes subsequently
