Jakarta, CNBC Indonesia – World tin prices rose slightly in today’s trading. But enough to make tin carve a record high price of all time.
On Friday (4/3/2022) at 14:45 WIB, the world tin price was recorded at US$ 46,520/ton, up 0.23% compared to yesterday’s closing price.
World tin inventories have continued to decline since reaching their highest point. Currently, tin inventories in warehouses monitored by the London Metal Exchange (LME) are recorded at 2,270 tons. This amount has decreased by 8% from February 3 of 2,475 tons.
The world tin price is believed to have good prospects this year. Analyst predicts the price of tin will continue to strengthen throughout 2022.
Fitch Solution revised its projection for the average tin price in 2022 to US$ 42,000/ton from the previous US$ 32,500/ton. This projection is also higher than the average tin price in 2021 of US$ 31,172/ton.
Fitch Solution raised its projection for the average tin price due to the slow global supply of tin due to Covid-19. On the other hand, demand recovery grew faster than supply.
The tight supply of tin in the world was affected by the decline in production in Malaysia and Indonesia. Combined, the two contribute 30% of the world’s refined tin production.
Meanwhile, the rapid recovery in demand was mainly due to tin being used in electronics via solders and semiconductors. Demand is skyrocketing from the medical sector and the use of personal devices due to mobility restrictions.
Future demand for tin will also increase from photovoltaic cells, which are the main component in making solar panels.
The supply tightness starts to ease at the end of 2022 and this should start to stabilize prices. But prices will continue to climb higher over the years as demand will continue to be strong and increasingly outpace supply.
Indonesia is a big player in the world tin market. PIn 2021, the national tin production is estimated to be 71,000 tons. Up 33.96% and became the second largest after China.
Meanwhile, Indonesia is estimated to have 800,000 tons of tin reserves. Also the second most in the world, only lost to China.
Indonesia is also the world’s largest tin exporter. According to World Bank records, Indonesia’s tin export volume in 2018 was 75,518.3 tons. The distance with Malaysia in second place is very far.
CNBC INDONESIA RESEARCH TEAM
(ras/ras)
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