Yunnan Tin Company Limited (YTCL) (000960.SZ), the world largest tin producer, will cut its scheduled output by 30 percent in the fourth quarter through periodic production cessation and reduction, to cope with slide of tin prices and falling sales volume.

Market insiders say the non-ferrous industry has entered a downward cycle, yet the fundamentals for tin are stronger than other metals because of its scarcity and high concentration of output.

YTCL has a strong influence in the prices of tin products. From 2005 to 2007, three major products of YTCL took market shares of 14 percent, 15.64 percent and 19 percent, respectively, on the international market, and 36 percent, 34.62 percent and 40 percent on the domestic market.

The production-cutting move is a way to control risks initiatively,and also is a common choice for other enterprises in this industry, analysts say.

Nine tin producers in Indonesia agreed to cut output in late October. PT Timah in Indonesia, the world's second largest tin producer, is reportedly to cut its output by 23 percent from that of 2007.

China and Indonesia produce 70 percent of the world's tin products.