Tin trade between China and Myanmar is set to be disrupted again after two new COVID cases were confirmed in Panghsang, Myanmar.
Tin production in the Man Maw area of Myanmar, one of the most significant areas in the world, passes through the city of Panghsang on its way to China. From Panghsang, trucks pass through the Chinese border town of Menglian before heading to Gejiu for smelting and refining.
According to a statement released on 25 February, Menglian has ceased to allow trucks from Panghsang through. Due to China’s Zero COVID policy, even a single case of COVID is viewed as a risk. Panghsang will be locked down between 1 and 5 March for all residents to be tested for the virus. Once the scale of the outbreak has been determined, the local authorities will review the closure of the two towns.
Our view: Before the latest lockdown, supply of tin concentrate had been slowly improving as backlogs cleared. In the period between the announcement and the closure of Menglian, shipments increased significantly as traders looked to get as much material into China as possible. Around 400-500 tonnes of tin-in-concentrate was estimated to have passed through Menglian in one day due to the rush, combined with recent higher grades of tin concentrates.
