Refined Tin consumption to increase marginally in 2016,forecasts ITRI Survey

SEATTLE (Scrap Monster): The International Tin Research Institute (ITRI) has released the results of the recent survey conducted among tin users worldwide. The survey was conducted during the three-month period from June to August this year and was attended by 129 companies. The participating companies accounted for nearly 45% of the global refined tin usage during the previous year.

According to the ITRI survey, companies were found more optimistic about refined tin sales in 2016. There was a marked improvement in sentiments among participants when matched with the similar survey conducted in 2015. The participants hoped that global refined tin usage may witness marginal growth of 1% in 2016, mainly on the back of strong recovery in Chinese tin solder market.

Based on the data from the recent survey, ITRI revised the estimate of refined tin usage in 2015 to 345,700 tonnes. The demand for refined tin declined during the previous year. However, the demand is expected to remain unchanged or report marginal improvement during the current year. The global tin use including refined and unrefined tin forms totaled 420,400 tonnes in 2015. The use of recycled tin accounted for 31% of the total usage. The proportion has dropped in comparison with 33% in 2014. The stock data reported by participants indicate that pipeline stocks held by tin users have declined by nearly 30% over the past five years to nearly 21,000 tonnes.

Solder accounted for the largest share of global tin use during 2015. The market share for solder stood at 47%. However, the use of solder during the year fell to the lowest level in almost a decade. According to survey participants, miniaturisation and solderless technologies pose immense threat to producers. Provisional estimates suggest that Chemicals accounted for 16% of the global refined tin use, followed by Tinplate (15%), Lead Acid Batteries (8%), Copper Alloys (5%) and Others (9%). On the positive side, automotive and industrial applications for tin have continued to show tremendous growth during the year. Also, powder and paste production in China is expected to remain buoyant during forthcoming years.

According to survey participants, chemicals market continues to be squeezed by regulatory issues. However, producers outside of China predict market growth to happen in 2016. The market for inorganic products remained flat. The real concern is the excess tinplate capacity existing in China, which may continue to limit pricing prospects. Overcapacity has moderated the recent surge in use of tin in lead-acid battery grids. The slowdown in demand for e-bikes and the rising competition from lithium-ion batteries has badly impacted Chinese usage of tin.

Meantime, latest trade statistics released by Chinese Customs authorities indicate sharp surge in country’s imports of tin ores and concentrates during the month of August this year. The gross weight of imports recorded a jump of 188% from the previous year to total 38,428 tonnes. The key supplier during the month was Myanmar, accounting for almost 99% of the total Chinese imports. The cumulative ores and concentrates import during the initial eight months of 2016 totaled 329,373 tonnes, significantly higher by 92% when matched with imports during the corresponding eight-month period in 2015.

About ITRI

ITRI is a not for profit membership based organization 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.