Transport restrictions were implemented in mid-November for the celebration of the 60th anniversary of Honghe state in Yunnan province, leading to government instructions to halt production. During the one-month pause in operations, the company will undergo planned annual maintenance of its smelting and refining facility.
ITRI View: We estimate that the smelter’s refined tin production in 2017 will exceed 25,000 tonnes, up from 20,100 tonnes in 2016. The maintenance period is not expected to have a significant impact on our estimate for China’s refined tin output since the smelter’s production so far this year has already exceeded our expectations. The short-term impact is also expected to be limited; the Chinese market has not responded significantly to the news with the spot price remaining at recent lows of RMB 143,000 yuan (~US$21,500).