Tin price rises on confirmation of mining ban in Myanmar

Three-month tin on the London Metal Exchange gained as much as 3.8% in the Asian morning trading session and was up 0.7% to $27,595 per metric ton by 07:57 GMT.

“We have confirmation that Wa State mines were closed on August 1 as mandated,” the ITA told Reuters on Wednesday.

The ban was announced in April when it immediately boosted prices of the metal that is used in the electronics and semiconductors sectors. The duration of the ban is not known.

The Wa region is estimated to have accounted for over 70% of Myanmar’s tin production in 2022, and Myanmar is the world’s third biggest in terms of tin reserves.

The ITA said in a statement issued on Thursday that previous market expectations of one to three months for the suspension “now seem overly optimistic”, and it may also take longer to re-open mines.

The ban’s short-term impact had been priced in, but the lasting supply disruption and steady demand outlook will support tin prices, said analysts at Orient Securities.

Despite supply concerns, weighing on the market was a strong dollar, making it less attractive to buy the greenback-priced commodity.