Yeh it seems as though China was stockpiling semis because despite 'opening for business', and despite >30% drop in exports from Indonesia, which should have been very good for supply/demand, SHFE has continued to stockpile and the price fall. Unfortunately due to the low overall vol in the tin market we are very much at the mercy of a volatile (and easily manipulated) market which also means, at this stage we are far more at the mercy of macro drivers (costs rising, tin price/market) than the micro for MLX. If there is more demand destruction caused by (global?) recession later in the year we all could be in for a longer wait than we hoped, but one thing I like about this investment - tin price can't stay repressed forever.
There are no new mines starting because the current tin price doesn't justify them. Some existing major tin resources are nearly exhausted. The world still needs semis and solder, with that need ever growing. This combo of factors will leave us in a very good place one day.
So patience, as cashy says, will reap significant rewards sooner or later imv.
MLX Price at posting:
28.0¢ Sentiment: Buy Disclosure: Held
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