Discover the Future of Tin Investments: Demand Weakens but Recovery Expected in 2024
As the world’s leading financial market journalist and investment manager, I bring you exclusive insights into the tin market. According to the International Tin Association (ITA), tin demand was weaker than expected last year and is projected to see only a modest recovery in 2024.
Despite this, tin has been a standout performer on the London Metal Exchange (LME) this year, with prices up 27% since January, trading at $32,250 on Monday. However, the ITA’s survey of tin users reveals that this price strength is more a result of supply dynamics than actual demand.
In 2023, refined tin usage declined by 3.9%, falling short of expectations. Total tin usage, including refined and unrefined forms, dropped by 4.9% year-on-year. The coming year is expected to bring a moderate recovery cycle, driven by China.
While demand from the soldering sector was lower last year due to a cost of living crisis, a 2.5% increase is forecast for this year. Other major demand drivers are also expected to bounce back in 2024.
Global demand weakness has led to a surge in exchange inventory, with stocks increasing significantly in 2023 and early 2024. However, a tightening of the mainland market in China suggests that the supply chain may face challenges ahead.
As Chinese smelters struggle with raw material shortages, the fate of the Man Maw mine in Myanmar remains uncertain. This, coupled with the global demand downturn of 2023, has created a sizeable stocks build that has helped dampen market volatility. However, as demand recovers in 2024, tin’s supply-chain stress may increase, leading to potential turbulence ahead.
Stay informed about the latest developments in the tin market to make informed investment decisions. The insights shared here are from a trusted columnist for Reuters, providing expert analysis for investors worldwide.