The average of Indonesia's tin price in June until June 26 is observed to have risen by almost 9 percent to a level of $16,500 per ton compared to the previous month, which was at the level of $15,200 per ton. In fact, tin was traded above $17,000 per ton, the highest level since January this year. The reopening of economic activity, especially in tin's producing and consumer countries, has become a positive factor that has increased the demand for tin.
In addition, the efforts of PT Timah Tbk as the largest tin producer in Indonesia as well as the world, which announced to reduce export targets by 23.09% to 55,000 tons in 2020 also provided support for this commodity. Indonesia contributes about 20 percent of global tin supply, so the reduced supply from Indonesia certainly has a significant impact on the global tin market.
Meanwhile, the tin market in China since last year has faced the problem of supply of raw materials, the majority of which came from Myanmar. In fact, in September last year until now, China turned into a net importer of refined tin because of difficulties in obtaining these raw materials. China's net imports in the first four months of 2020 cumulatively reached 2,600 tons, inversely proportional to the same period last year where China became a net exporter of refined tin of 3,600 tons.
Yunnan Tin Announces Suspension of Production for a Maximum of 28 Days
Yunnan Tin Group as China's largest tin producer and the world's second largest producer after PT Timah Tbk, announced it would suspend production due to regular overhaul at the smelter which began on June 24 and is targeted to last no more than 28 days. Although Yunnan Tin states that it will not have a major impact on their annual production plans, these routine maintenance activities will indirectly have an impact on domestic tin supply.