Tin steadied around $50,000/t amid conflict in the Middle East
Tin prices have steadied around $50,000/t amid shifting risk sentiment in response to the latest developments surrounding the conflict in the Middle East.
On the demand side, inflationary pressures stemming from a global energy shock, alongside the risk of a derailed recovery in global manufacturing, are dampening the outlook.
LME net fund length has more than halved from the record bullish levels reached last December. However, the disruption could provide renewed impetus to energy transition technologies, such as solar and electric vehicles, to which tin is critical.
On the supply side, Indonesia’s regulatory landscape is back in focus following the reset of RKAB timelines at the start of Q2, with only 150 tonnes traded on Indonesian exchanges so far in April.
Concerns over potential diesel shortages impacting global mining operations have also emerged amid the current situation in the Strait of Hormuz, with artisanal supply most likely to be affected.
Remaining the world’s leading tin producer, Yunnan Tin has benefited from both rising metals prices and boosts to its production at a time when feedstock constraints are seeing many producers cut back output.
The tinplate sector has experienced intense international competition over the past two years, driven by a surge in Chinese exports as domestic production increased while consumption stagnated. A recent easing in Chinese export volumes is expected to provide some respite for ex-China tin mills.
