According to a report from Tinco CEO Brian Menell, the tin supplies are currently constrained and the demand is robust, something that may make a compelling market for the metal, according to Mining Weekly.
Tin prices recently recovered significant ground to $23,000 per ton, more than double the value for the commodity 18 months ago. Part of this rise was attributed to the significant demand for metal, as it remained a significant resource for fueling economic growth, the news source reported.
“The demand outlook is very robust and the supply outlook is very constrained. Hence our view that tin has very a compelling and exciting market demographic,” Menell told Mining Weekly.
According to the news source, there are not many new developments within the tin industry, which has many sites that lack any semblance of mining efficiency. Declining production and limited scope to increase exports have been the story for many associated companies.
Analysts have predicted a significant return in the market bullishness for the metal once the world begins to recover from the global economic recession. The many new applications for the resource could also help to boost mining profits for companies who extract the commodity, according to New Straights Times.
Lead-free products are in high demand, something that will add to the value of tin, and breakthroughs in the field of nano-technology could help to propel the price of the resource higher. Superconductors and sensors have also started to include chemicals derived from the commodity, the news source reported.
Mining profits could increase for the next two years due to the tight supply situation that exists, Reuters reported. Despite a drop in the number of Japanese companies that are seeking the metal, the global market will still struggle to match the consumption levels worldwide.
“People are looking for investment opportunities, we’re getting more and more enquiries about how to get into the industry,” Peter Kettle, manager of statistics and market studies for UK-based consulting firm ITRI, told Reuters.
A drop in the exports from nations like Indonesia could keep the gap at a wide level, despite a decline in demand from Japan. A crackdown in illegal mining, tighter export rules and falling onshore reserves could limit the production from the Indonesian mines further, according to the news source.
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