Several smelters in China’s Nankang city, Jiangxi province have reportedly been ordered to suspend operations because of the water pollution. Three tin smelters in the area – Nanshan, Jinlong Mining and Kaiyuan Mining – have been closed since January 13. It is unclear when the smelters will reopen. The local government is carrying out a detailed investigation right now.
Prices for tin ingots from the above three smelters have increased after Spring Festival according to traders. Usually, the brands from Jiangxi are cheaper than in the two main production areas – Yunnan and Guangxi.
Tin smelters in other areas of Jiangxi province haven’t been affected. But most of them just started operation this week after the long holiday and their production hasn’t risen to normal rates yet.
ITRI View: Refined tin and product output by the three smelters is an estimated around 12,000t tonnes per year. Yunnan Tin, the biggest Chinese tin producer, had already suspended their smelting operation with 50,000t production per year from the end of December for 35 days. So if the production in Jiangxi does not resume shortly, it could increase the supply tightness in China in the short term.
