For decades the tin market has moved from one crisis to another, and the current world recession is now raising new challenges for all stakeholders in the industry. In the short-term the market is again oversupplied, but in a few years the situation could change dramatically. Though global demand for tin has fallen rapidly to an estimated 350,000 tonnes in 2008, the 15 tin companies listed on the ASX are doing extremely well. Check out an overview.
Malaysian tin jumped 7.5 per cent to score more than a 4-month high on Monday to US$ 12,080, as soaring London Metal Exchange prices and buoyant demand led by Europe boosted prices, one dealer said. The current price level was unseen since December 12, 2008. Tin price had peaked at $25,495/t in May 2008, but then slumped by more than 50 per cent in five months, due to the global financial crisis.
Although lower tin prices may appear to be a sign of a faltering market, many metals analysts say the supply market remains increasingly tight and a deficit is expected this year. There is a huge contradiction of what is happening to the price and the underlying state of the market.
Tin prices have dropped to their lowest level in over a year as the global financial crisis continues to cause concern that economic slowdowns worldwide will substantially decrease the demand for raw materials.
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