Citigroup cuts copper forecast on tariffs risk, China outlook
The bank has cut its short-term outlook for copper prices by 11% to $8,500 a ton over the next three months.
China’s refined tin output in June rose 10.9% from the prior month to 15,567 tonnes, state-backed research house Antaike said on Tuesday.
The increase came as restrictions on power usage in the tin-smelting heartland of Yunnan were “basically lifted” last month, Antaike said in its survey of 20 producers; the curbs had been imposed amid an electricity shortage.
Output in January-June totalled 87,000 tonnes, said Antaike, up 24.7% from a coronavirus-affected first half of 2020.
Tin ore supply is still tight as coronavirus curbs in Myanmar mean operating rates at the country’s mines – which Antaike put at about 40% in June – will remain low, while the Yinman mine in Inner Mongolia has not yet restarted.
China’s refined tin output is expected to decline significantly in July, Antaike said, after top producer Yunnan Tin suspended production at its main smelter from June 28 for up to 45 days.
Tin prices on the Shanghai Futures Exchange rose as much as 2.6% to a record high of 219,550 yuan ($33,957) a tonne on Tuesday.
Click here for an interactive chart of tin prices
($1 = 6.4655 Chinese yuan renminbi)
(By Tom Daly; Editing by Rashmi Aich)
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