Tin prices are on the rise, but the metal’s good fortune may not continue for much longer.
According to the latest Consensus Forecast Commodities report, tin prices have enjoyed support from higher demand in China, as well as lower exports from Indonesia, the world’s second largest tin producer. Strong government regulation in Indonesia, specifically stricter mineral export rules implemented in early 2014, have kept a lid on the country’s output.
However, there’s been talk that Indonesia may , and FocusEconomics sees an increase in output from Indonesia leading to a drop in pricing “in the near future.”
“The Association of Indonesian Tin Exports expects tin shipments to increase in the coming months and total 66,000 metric tons on average this year,” the firm wrote.
Similarly, reported that 50 percent of Chinese traders predicted that tin prices would drop this week.
Tin was trading at US$17,824 per metric tonne on July 8, up from around $13,500 per metric tonne in the second half of last year. Here are a few analyst predictions of the average tin price for the third quarter of this year, as per FocusEconomics:
- CPM Group; $16,650
- Macquarie; $15,750
- Société Générale; $17,000
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Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.
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