China refined tin imports in June were very strong again, rising by 75% year-on-year and 53% compared to May to 2,386 tonnes, according to latest China Custom data. The positive arbitrage between LME and domestic Chinese prices attracted more imports in June. The total refined tin imports were 13,581 tonnes in the first half of this year, up by 183% compared to imports of 4,805 tonnes in the same period of 2011.
However, the increase of imports doesn’t mean the consumption is recovering. Most producers report that their sales are still weak. But the domestic refined production is decreasing and partly offsets the pressure of the big imports. Chinese refined tin production fell by 7% y-o-y again in June to 12,229 tonnes, and 6% y-o-y to 70,157 tonnes in the first half of this year. Overall, the production and consumption in China are all declining currently. ITRI was told the availability of raw materials, especially scrap, has become more and more difficult. Furthermore custom smelters have lost money as they are unable to hedge purchases in a falling market.
China imported 2,395 tonnes tin concentrate (gross weight) in June and 18,291 tonnes in January – June, up by 4% and 12% y-o-y respectively.
