Author: Paul Ploumis22 Apr 2014 Last updated at 02:11:01 GMT
JAKARTA (Scrap Monster): Global tin market is facing a shortfall since 2010. According to the Hindu Business line, the condition will prevail for the coming years. The regulations imposed by the Indonesian government on tin trade are the main reason behind the deficit of the metal. This is due to the minimum bid price set by a committee for Indonesian tin each week which is above LME price. Experts say that the traders cannot cope up with that price as long as there is limited availability of tin in other exchanges.
Global Tin demand is expected to remain strong in the forthcoming years. However, many experts analyze that the prices of the metal will lose its momentum. Business Line noted that the demand will again increase due to the growing global GDP. The electronics field also has a key role in the increasing demand of the metal. Since tin is used in lithium in batteries and also in other emerging technology, obviously tin demand will increase to a peak level.
Before the setting strict prices rules, Bangka Island in Indonesia was the primary source of Tin for major consumers including Smartphone makers, Samsung for the metal. China, the major consumer of tin is now looking for an alternative method in order to meet up the demand for Tin. As an alternative, they used to import raw material from Myanmar instead of buying from Indonesia.
In order to face this highest demand of tin globally Minsur-world’s third largest producer of tin has decided to increase its production from San Rafael and Pittinga mines. Despite all these issues, the prices of Tin are likely to lose its value, report says. The price condition will continue as such unless there is any significant measure taken.