SHANGHAI Chinas Yunnan Tin Co. Ltd. expects to narrow its losses in the third quarter, with tin prices rising sharply due to restrictions on supply from Indonesia, the company said.
The companys net loss for the nine months ended Sept. 31 is expected to land between 980 million yuan and 1,010 million yuan ($160 million to $165 million). This implies a net loss of between 15 million yuan and 45 million yuan ($2.5 million and $7.4 million) in the third quarter, well below net losses of 194 million yuan and 771 million yuan in the first and second quarters of this year, respectively.
The narrowing of its net loss was due to higher tin prices and a write-off provision on inventory deprecation in the second quarter, Tunnan Tin said.
The London Metal Exchanges three-month tin contract settled at $23,475 per tonne Oct. 14, up 21.6 percent from this years low of $19,300 per tonne on July 26.
Indonesias tin exports tumbled after the government tried to force all exporters to sell tin via a local exchange before shipping.
Yunnan Tin posted a net profit of 85.4 million yuan in the first nine months of 2012.
A version of this article was first published in AMM sister publication Metal Bulletin.