Chinese refined tin imports soared in February to 3,719 tonnes, twelve times higher than a year ago, as well as a 130% growth versus January, according to China Customs data. The large tonnage is believed to include delayed deliveries of substantial volumes of tin bought in January or at the end of 2011, when Chinese prices were much higher than on the London Metal Exchange. Chinese domestic prices traded at an average 28% premium to the LME in January. However the Chinese price includes 3% import duty and 17% VAT, and the premium fell to an average of only 17% in February, with a closed arbitrage window pointing to softer import levels in March. The Chinese market is still oversupplied because of the big import since the final quarter of last year and weak domestic demand. However the domestic price is believed be supported at 160,000 -165,000 yuan/tonne (US $25,700 -26,000/tonne) by the high price of smelting raw materials (concentrates and scrap) and import costs.
Chinese tin concentrate imports in February increased by 337% year-on-year to 3,262 tonnes (gross weight). The imports were mainly from Burma and Bolivia, at 2,051 tonnes and 763 tonnes respectively, up by 884% and 424% on February 2011 levels.
