ITRI forecasts tin market shortage despite drop in demand

SEATTLE (Scrap Monster): The latest research report released by ITRI forecasts that global tin market is likely to end in deficit during 2015-’16 despite sharp decline in demand. The report, based on a recent survey conducted among tin users, was released during the 5th ITRI London Tin Investment Seminar held yesterday. The 148 companies which participated in the survey accounted for more than 46% of the world refined tin use in 2014.

The survey indicates that there has been a sharp contraction in tin demand during recent months. The slowdown in demand had initiated during the latter part of 2014, it says. The global refined tin usage is likely to post a decline of over 3% in 2015, when matched with the previous year. The demand is likely to fall further in 2016, it adds.

The key reason for the significant demand drop is attributed to the slump in China’s solder industry. The solder companies in the country who participated in the survey reported sharp year-on-year decline of 6% in refined tin usage during the year. The decline is anticipated to be more for non-participating companies. The companies outside China expect the tin usage to either maintain previous year’s level or post slight rise in 2015. Furthermore, solder and chemicals segment could post positive growth in 2016.

According to the survey participants, worldwide tin consumption is expected to fall by 3% in 2015. Also global refined tin and mine production is likely to decline by nearly 8% during the year. The drop in production is likely to result in a supply deficit of 6,000 tonnes in 2015 and 10,000 tonnes in 2016. The Association notes that tin market has ended in a deficit during 8 out of the last 10 years.

ITRI is a not for profit membership based organisation limited by guarantee. It represents the tin industry and is supported by the world's most important tin producers and smelters. ITRI’s principal aim is to support and encourage the use of tin in existing and new applications.