Tin prices are on the rise with demand remaining strong, yet a prolonged mining slump and other factors are contributing to tightened supply.
A metal used as solder for electrical circuits, tin is very much in need by an assortment of manufacturers. Yet major exporters, Indonesia and Myanmar, are shipping much less of it in the face of a multiyear slump that investment in mines and smelters sapped.
Tin has rebounded from January when its prices reached their lowest point since 2009. Supplies this year will be the smallest compared to demand in 20 years.
According to a report from The Sale Lake Tribune, Phoenixx International Resources LP, a metals wholesaler in Pittsburgh, is seeing its customers lock in tin prices two months prior to delivery rather than risk being gouged further down the road. This is the first time that’s happened in more than two years.
“People are jumping in to grab some, saying they think it’s a good price,” said Brian Helsel, Phoenixx president, who has more than two decades’ tin trading experience. “Based on the fundamentals, I think the bottom of the tin price should be now in.”
Tin Performing Well
Our own Raul de Frutos wrote that zinc and tin are performing the best among industrial metals with aluminum, copper and nickel lagging behind substantially. “We would like to see these metals leading the broad rally but they are not. While these metals haven’t shown any strength, the broad rally in industrial metals, itself, is prone to fall short,” he said.
You can find a more in-depth tin price forecast and outlook in our brand new Monthly Metal Buying Outlook report. Check it out to receive short- and long-term buying strategies with specific price thresholds.