Yunnan Tin announced that it had stopped production for maintenance at its main smelter in Gejiu from 27th April. It is the second major producer in China to announce a production halt in April. The country’s third largest producer, China Tin, has halted its production from 16th April. Both of the companies will cease production for 45 days. Yunnan Tin is largest tin producer in the world, recording a record level of output of 75,924 tonnes in 2014.
Tin prices in China rose quickly after the reduction news. The domestic spot physical price rose to RMB 116,000yuan/t (USD $ 18,923) and the 3-month closing price of SHFE rose to 118,800yuan/t (USD $19,380) on 4th May. Market confidence is rising with the smelters’ production halts and the recent decline in tin concentrate imports from Myanmar.
