Last week, China’s data showed that the Inflation Rate YoY for the month of December was increased to 1.80%. China’s producer price index (PPI) in December rose 4.9% from the same month a year ago, higher than the expectation at 4.8%. The country’s consumer price index (CPI), on the other hand, rose 1.8% in December, below the expectation at 1.9%. But this is higher than the growth in November at 1.7%.
Germany’s economic data that was released last week were mostly positive. The positive data can be seen from Germany’s Retail Sales YoY for the month of November was increased to 4.40%, Germany’s Construction PMI for the month of December was increased to 53.70%, Germany’s Exports MoM for the month of November was increased to 4.10% and Germany’s Industrial Production MoM for the month of November was increased to 3.40%.
In terms of Japan economies, the economic data that was released last week were also mostly positive and it can be seen from Japan’s Average Cash Earnings YoY for the month of November was increased to 0.90% and Japan’s Leading Economic Index for the month of November was increased to 108.60.
Tin smelters keen to raise TCs on shrinking profits
Tin smelters in Yunnan province are planning to raise the tin concentrate treatment charges (TCs) as high concentrate prices have eaten their margins. With a drop in tin ore exports from Myanmar in 2017, higher labor costs and the new environment tax in China, tin smelters have been under pressure on the cost front.
While local miners in Yunnan also looked set to withhold their TC offers, the approaching Chinese New Year in mid-February may lead some to budge due to cash flow requirement.
Many smelters in the province have low tin inventories as they stopped production in early December due to environmental checks.