(Corrects to Shanghai Securities News, not Shanghai Securities
Time, in the 10th paragraph)
April 17 (Reuters) - Tin prices rose as much as 11% in
China on Monday to their highest in nearly two months after
talks circulated in the market of a possible mining ban in major
tin ore producer Myanmar, threatening supplies.
China, the world's biggest refined tin producer, relied on
Myanmar for 77% of its tin ore imports in 2022. It imported
187,260 tonnes from Myanmar last year, China's customs data
showed.
"From Aug. 1, 2023, work at mines, including exploration,
mining and processing will be suspended," Myanmar's Wa State
Central Economic Planning Committee said in a document issued on
April 15 seen by Reuters.
Reuters has not been able to independently verify the
document.
The move is to protect the remaining mining resources, while
companies whose contracts are still ongoing can still work on
exploration for another three months, the document said.
An official in charge of external affairs for the United Wa
State Army, the governing body of Wa state, did not immediately
respond to a Reuters' request for comment
The most-traded May refined tin contract on the Shanghai
Futures Exchange , by 0336 GMT, surged as much as 11.4%
to 217,430 yuan ($31,618.82) a tonne, its highest since Feb. 23
and the biggest daily gain since March last year.
Benchmark three-month refined tin on the London Metal
Exchange increased as much as 9% to $27,095 a tonne, its
highest since Feb. 22.
Tin is mainly used in the electronics, chemistry and
automobile sectors.
"The Wa state is the largest tin mine producing area in
Myanmar, and most of its output is sent to China. The ban on
mining will undoubtedly make the already tight supply of tin
mines even tighter," broker Xinhu Futures was quoted by
state-run Shanghai Securities News as saying.
However, it is unclear whether the ban will be implemented
as "this is not the first time such notifications have been
made" and "the main functional departments of Wa state have not
received such specific notifications", the report by Xinhu said,
citing sources.
Shares of Chinese producer Yunnan Tin Co Ltd ,
the world's biggest refined tin producer in 2022, jumped as much
as 10% to a nine-month high of 16.85 yuan.
($1 = 6.8766 yuan)
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Tin prices surge on talks of Myanmar ban ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Mai Nguyen in Hanoi and Siyi Liu in Beijing;
editing by Uttaresh Venkateshwaran)
mai.nguyen.thomsonreuters.com@reuters.net))
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