Tin prices in China are expected to rebound further in May due to increasingly tight supplies, say analysts. In the international market, PT Timah, the largest tin company in Indonesia, said that it will cut monthly output to less than 2,000 metric tons (tonnes) from its previous plan of 2,500 tonnes.
Meanwhile, another large tin smelting plant, PT RefinedBangka Tin said that its output in April amounted to 420 tonnes and predicted the output in May to stand at 200 tonnes or much less.
In addition, Myanmar, a main tin producing area, will enter into the rainy season, which will dampen its shipments. Customs data showed that China's imports of tin concentrates in March fell to 16,490 tonnes, of which 90 percent came from Myanmar.
On the domestic market, China Tin Group Corp announced to overhaul facilities from April 16. Yunnan Chengfeng Non-ferrous Metals Corp is also mulling over facility overhauls. Many recycle smelting plants said that due to the extremely tight supplies of scrap materials and falling prices, the domestic secondary tin output has shrunk.
Under the circumstances, domestic smelters actively enhanced offers. Tin ore prices in Guangxi started to increase last week. The early continuous fall in tin prices has forced many global tin producers to tighten supplies.
The production reduction has eased the glut. With the supplies becoming increasingly tight, the tin prices will rebound further in May, said Shi Haidan, an analyst of Fubao, a commodity information provider in China.
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