I have been bearish base metals for ages. However, i have a completely opposing view on one of them namely tin.
Mines are sellers of goods in the same fashion as sellers of clothes and televisions. How many goods one can sell is dependent on the demand of the good/item. If the item is in high demand, seller can not only sell more goods, but concurrently raise the sale price per item. The seller (almost always) cannot control the demand for the good and very few sellers can control the number of goods available for sale. Take TVs. Manufacturer A can produce 100,000 annum. That is the MAX he can sell. But if there are only buyers for 50,000, he cannot sell all his production. If demand for TVs leaps to 200,000, A can still only sell max of 100,000. A can however, increase sale price of his TVs IF nobody else is selling TVs. As we know world is over-supplied with TV/car/and just about every kind of factory. With base metals its the same. If mine can only prodice 100,000 tons of Cu, then he will take years to double production even if price for his goodsrises. But mine A may be able to rapidly increase prod by 10-15%. World has thousands of med-large Cu mines. Even if only half can increase production at short notice by 10-15%.... the effect is substantial as Cu demand is very unlikely to rise by 10% at short notice. Hence, price of Cu is then unlikely to rise by 10-15% in a couple of months. However, sustained demand can/will see Cu price rise 10-15% over a 6-12month period. At first glance tin should be same/similar to Cu, and on the demand side it is. World demand for Sn is likely to rise/fall at similar pace as demand for Cu. And as we noted: manufacter/seller cannot control demand. However, with Sn, the maker/seller of product cannot even control the SUPPLY. ALL of the world's Sn mines would love to increase production rapidly to meet strong rise in Sn price. But reality is, most mines are producing less Sn than 12 months ago and less than 4 yrs ago! The difference bedtween TV's and Cu on one hand and Sn on the other, is there is simply not enough resource available with which to increase supply. Indonesia has prod less Sn each yr for past 5 yrs. At BEST supply from this big producer will plateau, but even that is unlikely. Eventually, Sn deposits that were previously unviable will go into prod, IF Sn price exceeds and remains at/above $30,000. But it takes years for mines to start-up. Even old workings require substantial time and money to re-enter production. The lack of supply makes tin different from all the other base metals. And this sitiuation is likely to continue for forseeable future. Hence, i feel Sn price is unlikely to plunge, even in a economic slowdown. I have liitle doubt other base matals are far more vulnerable.
But situation for MLX is going to get far better than the obvious advantage reaped from a higher sale price for Sn. I will cover this issue in another post on a separate thread.
MM.
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Last
65.0¢ |
Change
0.015(2.36%) |
Mkt cap ! $576.1M |
Open | High | Low | Value | Volume |
64.0¢ | 66.0¢ | 63.5¢ | $1.473M | 2.288M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
3 | 39650 | 64.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
65.0¢ | 114097 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 25000 | 0.635 |
1 | 10000 | 0.630 |
1 | 25000 | 0.625 |
2 | 2500 | 0.620 |
3 | 31000 | 0.615 |
Price($) | Vol. | No. |
---|---|---|
0.655 | 10001 | 1 |
0.660 | 110881 | 5 |
0.665 | 45112 | 1 |
0.675 | 68500 | 1 |
0.680 | 98412 | 8 |
Last trade - 16.10pm 18/07/2025 (20 minute delay) ? |
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