SHANGHAI, Aug. 7 (NYSE:SMM) - The 2013 SMM Tin Industry Chain Summit will be held in Shenzhen September 1-3, to focus on tin price trends.
Tin market saw a sag in both consumption and prices in the first half of 2013 with global economy recovering slowly. However, LME tin prices climbed above $21,000 a ton lately, while buyers in domestic spot tin markets rushed to purchase, causing market players to wonder whether tin price is near a turning point.
Indonesian tin trader PT Timah cut its tin sales prediction for 2013 to 28,000 tons given sluggish consumption, a decline of 20% compared with last year and down 10% from the original target. Sources from the company disclosed that it might possibly suspend tin exports if necessary.
China's refined tin output only increased 5.7% year-on-year to 74,218 tons in H1 this year, while refined tin and tin alloy imports dropped as much as 36% to 9,066 tons. Tin ore and concentrate imports surged 154.1% to 46,460 tons in the same period.
Profits were squeezed throughout nonferrous metals industry due to noticeable increases in costs and limited sales growth. The National Bureau of Statistics (NBS) reported a 9% year-on-year profit decline in nonferrous metals mining and dressing segment for H1, with profits from major enterprises down 11.1%. Smelting and calendaring segments saw a decline of 14.5% in profit, with profit from major companies tumbling 19.6%.
In downstream markets, tin solder sector reported shrinking orders as traditional low demand season started. SMM foresees a significantly lower operating rate in the sector, with decline at some producers expected to hit 10%. Tin solder producers intended to purchase as needed in the short term to ensure liquidity and to control input costs.