(Yicai Global) Sept. 5 -- Yunnan Tin will respond to the industry association's initiative to slash the company's refined tin production by 10 percent this year, it said in an announcement today that boosted its share price.

The price increase of the main tin futures contract also jumped on the Shanghai Futures Exchange today.

The Kunming, Yunnan province-based company's stock [SHE:000960] closed up 4.77 percent at CNY11.43 (USD1.60) in the afternoon after hitting a high of plus-9.1 percent and the Shanghai Commodity Futures Exchange reported CNY142,740 (USD20,020) per ton for tin in a 3.12 percent jump.

Market supply and demand factors precipitated a plunge in domestic and foreign prices in early July. The main contract price of the Shanghai Futures Exchange has fallen by 10 percent to a post-2016 nadir, hitting the performance of suppliers of this rare metal and denting market confidence.

Chinese smelters decided to jointly trim their production of refined tin by 20,200 tons this year at the International Tin Association's two-day 2019 Asia Tin Week that wrapped up today in Xi'an, the capital of northwestern China's Shaanxi province, China Securities News reported today.

Pangkal Pinang, Indonesia-based PT Timah (Persero), the world's leading tin supplier, also indicated it will pare its output by more than 10,000 tons this year. This will reduce the supply of the refined form of the ore in the world by more than 30,200 tons, or about 10 percent of annual global production.

China and Indonesia contribute about 70 percent of global refined tin, so output adjustments in these two countries significantly impact the global market for this element used in alloys and as an anti-corrosion coating on other metals.

China's annual yield has held at 16-17 million tons in recent years. Yunnan Tin is one of the country's major suppliers, with annual smelting capacity of up to 80,000 tons.

Editor: Ben Armour