Bloomberg news has reported a global shortfall of ore supplies, while ore supplies from Myanmar to Chinese smelters have increased.
The deficit has been reported to drop to 7,000mt this year from the estimate of 10,800mt last year. However Myanmar ore output has grown from 20,000mt in 2013 to 25,000mt in 2014, reports ITRI China chief representative, Cui Lin.
The market is expected to remain in deficit in 2014 with Indonesia’s new export policy due to take effect in November. This policy may reduce production during the rest of the year. The low tin price may further curb high-cost production in Indonesia.
This year, China exported an average of 9,000mt of tin in metal, between January and August. During an interview conference in Suzhou, eastern China last week, Cui cited industrial data outlining expectations that exports would fall during the rest of the year, as Chinese prices moved above London Metal Exchange rates.
Indonesia is the largest shipper of tin, with China its biggest consumer.