- Write by:
-
Friday, September 25, 2020 - 6:38:33 PM
-
398 Visit
-
Print
Mining News Pro - Tin prices are due to extend their rally next year as top consumer China stocks up on the metal due to a recovery in demand for electronic goods.
The bulk of tin, making up nearly half of demand, goes into solder, used chiefly in the electronics industry to connect components.
The benchmark price of tin on the London Metal Exchange CMSN3 slid to $12,700 a tonne in March, the lowest level in more than a decade, as the coronavirus hit demand, but it had rebounded by 45% by early September largely due to recovery in China.
It has since slipped to around $17,500, weighed down along with other metals and stock markets by rising covid-19 cases, but analysts expect more gains late this year or early in 2021.
“As a result of this resurging demand, the tin market is set to remain in deficit until at least 2023. And as a result of this sustained deficit in our base case scenario, prices are set to return to about $20,000 a tonne in the short term,” Roskill analyst Adam Slade told a webinar this week.
Demand was hit by the pandemic as factories closed but supply also declined, with output from major miner PT Timah TINS.JK in Indonesia sliding 26% in the first half.
In recent months, the electronics sector has revived, with global semiconductor sales up 4.9% year-on-year in July.
Roskill forecasts world consumer electronics shipments will jump by 22% in 2021.
Strong demand, financial arbitrage and declining supplies have boosted Chinese refined tin imports, with tonnage during the first seven months of the year 11 times higher than the same period in 2019.
The Chinese buying along with rising demand elsewhere is due to send the market into deficit, Macquarie said in a note.
“We find enough reason here to adjust our supply/demand balance to account for some stocking this year and next. The resulting deficits look bullish for tin’s price in the next few years.”
Short Link:
https://www.miningnews.ir/En/News/605022
Copper’s lightning rally to record highs may not be sustainable in the coming weeks, with action concentrated on the ...
Over three decades, Jose Luis Manzano built a reputation for diving into distressed sectors in Argentina and navigating ...
China’s SDIC Mining Investment Co. is in advanced talks for a significant minority stake in Asia Pacific Potash Corp., ...
Anglo American shareholder Legal & General Investment Management (LGIM) supports the break-up plan announced by the ...
The International Centre for Settlement of Investment Disputes (ICSID) ruled in favour of Peru in a decade-long dispute ...
China’s CMOC Group Ltd. is being accused by a top US official of using “predatory” tactics to depress prices of a key ...
Democratic Republic of Congo’s government has lifted a suspension order on a Congolese copper and cobalt operation ...
Volcan Cia Minera SAA plans to make a series of debt payments through August and to refinance later obligations without ...
Peru’s copper production came in essentially flat for March at about 219,000 metric tons, government data showed on ...
No comments have been posted yet ...