CITIC Construction Investment: The central axis of tin demand growth rate will continue to rise, and the supply side will interpret "ore scarcity" as "ingot reduction".

CITIC Construction Investment's research report believes that with the global semiconductor cycle recovery, rapid development of artificial intelligence, smart electrification of electric vehicles, continuous growth of photovoltaic installations, and the vigorous development of digital economy as the new quality production force in China, the central axis of tin demand growth rate will continue to rise. In terms of resources and the supply side, tin has strong rigidity, with a global reserve-to-production ratio of only 14.8 years, and the main mine grades have been continuously declining in recent years, highlighting the problem of resource exhaustion. The Myanmar Wa State region, which accounts for over 12% of global tin production, will be completely shut down from August 1, 2023. The impact of the long-term shutdown is gradually becoming evident, with domestic tin smelting fees continuing to decline, and "ore scarcity" is evolving into "ingot reduction".