ICDX tin prices nearing the close of May were seen moving steadily close to the level of $40,000 per tonne in line with the China plan to lift the Covid curb in the financial hub city of Shanghai from June 1. Previously, after the re-surge of Covid-19 cases in China, which forced restrictions in several cities and the lockdown of Shanghai at the end of April had caused tin prices to fall from levels above $40,000 per tonne to hit a low of $33,000 per tonne. China is the world's first largest producer and consumer of tin, and the city of Shanghai itself ranks first as the largest contributor to China's economy.
Still from China, tin ore imports in April fell 45% to 15,811 tonnes on a monthly basis, according to the latest data from Chinese customs. Myanmar is still the main supplier contributing 9,448 tons or about 60% of the total imports. The data showed a decline in supply from Myanmar - usually accounting for around 90% of China's tin ore imports - due to the closure of the main port of Menglian (Meng'a) for more than a month between April 8 and May 10 due to Covid-related policies.
Meanwhile, Indonesia's first-largest tin producer, PT Timah Tbk reported a decline in performance in the first quarter of 2022 for both tin ore and tin production, which fell by 11% and 8%, respectively, said Achmad Ardianto, President Director of PT Timah (25/5). In addition, in terms of sales, it also fell by 4% compared to the same period last year, he added.
Indonesia's Tin Exports Potentially Stopped by the End of the Year
On the Road to G20: Investment Forum (18/5), the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said that the government plans to ban tin exports by the end of this year in order to build downstream and renewable and environmentally friendly new energy-based industries. Indonesia is the second-largest tin-producing country in the world, but only about 5% of the total production is consumed domestically. Thus, although the purpose of the export ban will have an impact on domestic added value, the implementation of the policy also needs to consider the absorption aspect in the domestic tin user sector as well as the sustainability of the tin smelter industry.
Japan - Prelim Industrial Production MoM
China - Manufacturing PMI
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China - Caixin Manufacturing PMI
Uni Europa - Final Manufacturing PMI
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Source: ICDX Research