Tin facing serious supply tightness as China sucks in stocks but falls far short of target

China’s plans to stockpile some 40,000 tonnes of tin in the coming year could threaten the London Metal Exchange’s smallest market with further tightness, sources have told Fastmarkets.

With the industry’s supply chain still reeling from the effects of the Covid-19 pandemic, concerns were now beginning to mount over the global availability of concentrate feed for smelters.
“The [global] tin market is very tight for concentrates,” a Europe-based tin trader told Fastmarkets. “I’m getting bid by Chinese smelters for tin concentrate every week, something that hasn’t happened in close to a decade of tin trading.”

In late April this year, the provincial government of Yunnan announced an incentive plan for companies in the region, which would receive subsidies on the purchase of base metals. The authority pledged to subsidize as much as 80% of loan interest, to create a total stockpile of some 800,000 tonnes of base metals....

Published

Hassan Butt

August 21, 2020

14:10 GMT

London