Tin in a "Dire Supply Issue"

Tin prices continue to show resilience, a welcome development for a base metal that should be feeling the pressure of a stronger US currency. However; when it comes to tin, the market’s dire supply situation is overshadowing the fact that the US dollar is currently trading around an eight-month high.

On Tuesday, tin prices were positive, and spent the session trading in the range of $20,040 – $20,290; climbing past their recent level of resistance while booking even more distance from their level of support of $18,900. This suggests, at least on a technical level, that more upside could be in store. Market fundamentals are also providing price support. Tin has garnered support from declining supplies, and this trend is continuing. Stocks of tin at LME tracked warehouses continue to decline, and are currently sitting around 12-year lows.

The tin market is undergoing a major supply chain adjustment as Indonesia is restricting tin exports. The country exported only 38,342 tons of tin during January-August this year, down 16% from a year ago. While the price response in tin encouraged Chinese tin smelters to step up production earlier in the year, the government’s environmental crackdown impacted some tin production.

Tn production is decreasing around the world, with the one exception being Myanmar, but this could be short lived. Myanmar’s tin production has surged in recent years, but a senior mining official at Myanmar’s Man Maw mine recently told Reuters that the mine’s deposits could be depleted in “two to three years”.

http://www.economiccalendar.com/201...tinue-to-strengthen-on-dire-supply-situation/