The trend of tin prices on ICDX began to move steadily with a downward trend entering the fourth week of August, however, if compared on a monthly basis, the average price of tin during August traded on ICDX was in the range of USD 35,640 per tonne or 4 percent higher than the average price in July. The highest price of tin on ICDX in August reached USD 36,615 per tonne and the lowest level touched USD 34,870 per ton.
In China, Yunnan Tin - the world's largest tin producer - began to resume production in early August after annual maintenance, and added with increased imports of raw material concentrates from Myanmar fueled speculation that the tightening supply problem in China's domestic market would soon be resolved, which at the same time dampened the market concerns on the supply side.
Meanwhile, from the demand side, the strengthening of the US Dollar against other major currencies also triggered a spike in tin prices - an increase of about 60% since the beginning of the year -, which of course resulted in a decrease in demand from the tin user industry because it made the basic cost of production higher. However, the US Dollar Index (DXY) which showed a downward trend at the end of the third week of August made tin prices stabilize again.
Yunnan Tin Sets Record Profits For First Half 2021
In the latest report, Yunnan Tin Company (YTC) was noted that during the first half of 2021 they managed to record a net profit of 960 million RMB or an increase of 375% compared to last year. YTC said that with the success of the Chinese government in handling the new Covid-19 infection has made the world's largest tin producer was able to rise from the post-pandemic slump in 2020. During the first semester, YTC produced around 43,200 tons of tin, an increase of 25.5% compared to last year. Sales of tin ingots also increased by 59% year-on-year. It is estimated that YTC will keep record a profit by the end of the year, supported by positive tin prices and the resumption of operation of YTC's main smelter after a 45-day maintenance schedule that started on 28 June.
Japan - Prelim Industrial Production MoM
China - Manufacturing PMI
Japan - Final Manufacturing PMI
China - Caixin Manufacturing PMI
Uni Europa - Final Manufacturing PMI
UK - Final Manufacturing PMI
USA - ISM Manufacturing PMI
China - Caixin Services PMI
Source: ICDX Research