By Vivien Diniz
Over the course of the last two years, tin prices found a comfortable spot at the bottom. With no where to go but up, it is time to see what 2016 has in store for the industrial metal.
Demand for tin is rising, and no new mines are set to come online in response. As a result, many analysts expect a deficit in 2014.
The average iPhone user may not realize that tin, used in solder to manufacture tiny electronic components, is sourced predominantly from Indonesia, where safety regulations are lax and miners regularly die at illegal operations. Recent changes to the US Conflict Minerals Act target minerals sourced in Africa, not Indonesia, providing
CRU sees commodity prices rising by an average of 8 percent in 2016, with tin and palladium being the hottest metals as far as price increase is concerned.
As the old adage goes, “The only cure for high prices, is high prices.” The fundamentals of the tin market are showing this statement to be true. The high price in April prompted a sell-off of stocks in China. Now that the price is depressed Indonesia has ban exports hoping
Tin and nickel have been in a battle for the highest priced non-precious metals traded on the LME. Currently the price of tin on the LME is $23,450 per tonne, while nickel is priced at $21,645 per tonne. Comparing the supply and demand fundamentals of the two markets is essential.