Tin Industry Dynamics

From January 1, 2018 onwards, the "People's Republic of China Environmental Protection tax" implementation, environmental tax on sewage charges and mineral development protection fees have historical lineage.

According to the regulations, environmental taxes are paid quarterly, starting from April 1, 2018 To 15th. Environmental law stipulates that the amount of air pollution tax is 1.2 yuan per pollution equivalent to 12 yuan, water pollutant tax rate of 1.4 to 14 yuan per pollution equivalent. According to different kinds of solid waste, the tax is 5-1000 The economy of excess of the decibel level, the tax is 350-11200 yuan per month. The provinces (districts and municipalities) may, in accordance with the tax law authorization, determine the applicable tax of environmental protection taxes.

In the process of mining and beneficiation of tin, air pollution of suspended particulates, copper, lead, zinc, arsenic and other solid wastes such as waste rock, tailings and sludge are produced. During the smelting process of tin, will produce soot, dust , SO2, Sn, as, Pb, Sb, NOx, sulfuric acid fog, silicon fluoride acid, HCL and other air pollution, circulating water system drainage, sewage and production wastewater, acid mist purification Wastewater, indium Recovery Workshop recycled Organic phase washing waste water, floor flushing wastewater, Water pollution such as waste water of car washing and wastewater from central laboratory, and pollution of solid waste such as arsenic fume, tin smelting fume, centrifugal slag, calcium sulfate slag, aluminum slag, sulfur slag, anode sludge Coal tar (fen shui), waste mineral oil, acid waste catalyst, etc.

On the basis of this year's tight supply of raw materials, the rising cost of environmental pressures will further exacerbate the pressure on tin producers in these areas, and the willingness of smelters to cut production is expected to be even stronger.

We expect the production of Refined tin in the Gejiu region of Yunnan this year to be generally 15% to 20%. In the case of stable or moderate growth in the overall demand for refined tin, the tin inventory in the previous period continued to decline, from 10,135 tonnes from September 22, 2017 to about 4606 tonnes in the year after March 30, 2018, while the Global Tin dominance inventory was at historically low levels, according to the International Association of Tin Data.

From the second half of the year, we expect that the Supply and demand balance of Chinese refined tin will gradually shift from oversupply to supply shortages, which will provide strong support for the rise in tin prices.