Home: Tin squeeze highlights critical minerals supply problems
Repair of electronic devices, tin soldering parts. Stock image.
(The opinions expressed here are those of the author, Andy Home, a columnist for Reuters.)
It’s typical of tin that it didn’t make it onto the International Energy Agency’s (IEA) list of metals needed to power the clean energy transition.
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Although designated a critical mineral by both the United States and China, tin has a habit of sliding between the gaps of the decarbonisation narrative.
Around half of all tin used globally goes into soldering circuit-boards, the hidden drivers of the electronic world, meaning it is everywhere but nowhere to be seen.
LONDON/KUALA LUMPUR (April 30): Malaysia Smelting Corp (MSC), the world s third largest tin producer, has told clients that its smelting operation is being severely affected by the Covid-19 pandemic and it will take nine months to resume normal output, a letter seen by
Reuters showed.
MSC said in the letter, dated April 26, that it had to restrict intake and make changes to contracts – a move that will further exacerbate shortages of tin used in solder for electronic products and chemicals.
Shortages started to emerge early this year, as accelerating industrial activity boosted demand for tin and supplies remained under pressure from Covid restrictions.
China ramps up tin exports as rest of the world runs dry
The super-squeeze in the tin market rolls on.
The London Metal Exchange (LME) three-month tin price CMSN3 is hovering just below February’s 10-year high of $27,500 per tonne, last trading at $27,135.
LME time-spreads remain acutely stressed. Cash tin closed on Monday valued at $28,250, commanding a $1,200-per tonne premium over three-month metal. The backwardation has been wider, flexing out to $6,500 in February, but is still extreme by any historical yardstick.
Step away from the LME paper market into the physical arena and things get even uglier with Fastmarkets lifting its premium assessments to record levels of up to $2,000 per tonne over LME cash.