tin, page-76

November 11, 2008


Chinese tin producers cut output on week demand and prices
Bloomberg reported that the top three tin producers in China, the world's largest maker and consumer, are reducing output as consumption weakens and prices slump.

Ms Li Xia a spokeswoman said Yunnan Tin Company, the world's biggest producing company, has had its overseas orders tumble significantly this quarter as the global economic slowdown curbed demand from builders and electronics manufacturers. Yunnan Chengfeng Nonferrous Metals Company China's second largest producer has idled about half its capacity.

She added that as far as I know, production cuts are an industry wide phenomenon. Demand from builders, electronics producers is weak, both in China and abroad.'

Mr Hongwu Yunnan Chengfeng Nonferrous Metals Company head of domestic sales said that last month's plunge in tin prices has further exacerbated export economics which were already weakened by a 10% tax in China. I don't see China exports of any refined tin in the near future, not even the metal products.''

Mr Li Jianzhi, a sales director, said that Liuzhou China Tin Company, the third biggest producer, has cut output by around 10%. Refined tin production was reduced by between 100 tonnes to 200 tonnes a month and the company has stopped concentrate purchases of about 200 tonnes a month in metal content.