China shuts Myanmar tin ore crossing amid virus fears

[BEIJING] China has closed a border crossing with Myanmar as it seeks to stop the spread of the coronavirus, further disrupting tin concentrate imports, an association official and a Chinese smelter source said on Wednesday.

China, the world's biggest producer of refined tin, relied on neighbouring Myanmar for 94 per cent of its tin concentrate imports in 2019. That slipped to 91.7 per cent in 2020 and was below 82 per cent in January-September due to repeated pandemic-related disruption.

Cui Lin, chief China representative at the International Tin Association, said the Chinese land port of Menga had been temporarily closed after the latest Covid-19 resurgence in Myanmar's Wa state.

The smelter source, based in China's Yunnan province that borders Myanmar, said the situation looked serious. "There has been too much disruption this year," he said.

Tin prices were down 0.2 per cent at US$37,350 a tonne at 1435 GMT, but they are up more than 83 per cent year-to-date, hitting a record high of US$38,800 last month due to shortages and low stocks.

"China's border towns with Myanmar have faced repeated Covid lockdown restrictions since the onset of the pandemic because of the relative porosity of the border and higher prevalence of Myanmar Covid cases," said Tom Mulqueen, an analyst with Amalgamated Metal Trading.

"This latest news is a reminder that the threat of ongoing disruption to tin concentrate trade from Myanmar to China is still very much alive as China continues to pursue its zero-COVID strategy."

REUTERS