by Kyle Fitzsimmons on SEPTEMBER 19, 2016
Tin cans. Cans are used for packing all sorts of goods – conserved food, chemical products such as paint, etc
Earlier this month saw tin futures reach their highest price in nearly 18 months due in part to a weakened dollar and stronger than anticipated Chinese manufacturing PMI.
What was not so surprising: Tin’s continued impressive performance as the metal has fared particularly well thus far in 2016.
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According to a report from Economic Calendar earlier this month, the U.S. dollar retreated after the Labor Department reported the domestic economy added fewer jobs than expected in August, which — compounded with news from China of increased manufacturing activity — bodes well for tin prices.
“Tin prices have climbed in 2016 amid a background o declining supplies,” wrote Donald Levit for Economic Calendar. “Chinese tin supply has decreased after environmental inspections resulted in the temporary closure of domestic smelters. Four smelters, accounting for 18% of China’s output, will remain closed for just over a month, and this should further tighten the market and contribute to lower supplies for the months ahead.”
Myanmar Tin Production Peaking?
Just last month, our own Raul de Frutos wrote that tin production in Myanmar may have reached its nadir. “Tin production in Myanmar has surged more than 10-fold over the past four years, accounting for more than 10% of global tin mine supply and helping to make up for falling Indonesian tin exports. However, according to a recent study released by the International Tin Research Institute, it appears that Myanmar tin production is peaking at some 50,000 mt per year, although there is still significant potential for the discovery of new ore resources.”