Tin market likely to witness shortage in five years: ITRI

SEATTLE (Scrap Monster): The latest report released by ITRI on the outlook for tin industry states high probability of global tin market developing shortage within the next five years. The industry body called for fresh investments in the sector to boost tin supply.

According to ITRI, the world tin market is expected to remain in deficit to 2018 with a cumulative shortfall of over 60,000 tonnes. This is regardless of the slowdown in usage-growth from 12.5% pa to less than 1% pa. Tin chemicals and energy related applications may see extended use of the metal.

The report states that the global mine production is expected to remain subdued through 2018.The two leading tin producers of the world-China and Indonesia may see huge fall in production. However, the production deficit from these countries may be offset by production from new mines elsewhere in the world. The global mine production is expected to fall to just over 280,000 tonnes in 2018. The production had averaged between 280,000 tonnes and 300,000 tonnes per annum during recent years.

ITRI notes that leading miners are investing heavily into existing operations. At the same time Greenfield projects face severe fund shortage.

The tin prices are expected to remain range bound into the fourth quarter of this year, but may flare up in the next three to four years.