The Tin Market – A ‘green market’

Tin has been one of the better performing commodities on the London Metals Exchange with a global tin market anticipated to be valued at US$8.23bn in 2023 with robust long-term fundamentals. AfriTin is well placed to take advantage of the burgeoning demand for tin and this, coupled with AfriTin being the only tin company listed on AIM paves for the way for becoming the tin champion of Africa.

The Supply Outlook – Robust demand and shrinking supply requires new capacity from AfriTin

Supply Deficit

The tin market has been faced with a consistent supply deficit over the preceding years and it is forecast that the global tin market will remain in deficit to 2022 as a result of increasing regulations in producing countries and depletion of ore reserves.

Ample opportunities exist for the tin market’s growth and will serve to exacerbate the already present demand-supply gap. Most pipeline projects for tin production globally are not expected to commence in the near future.

This presents an opportunity for AfriTin to cater for this increased demand.

AfriTin aims to cater for increased demand

Consumption Trends

Tin’s future amid the electric vehicle and battery storage markets is bright and will serve to drive its demand. There is good progress being made in its role in the EV market whilst it is widely used in lead-acid batteries and demand remains strong for electronic solders.

Another proponent for tin’s demand is its use in lithium-ion batteries. It is clear that tin’s versatility is on the increase and this bodes well for the price and market outlook going forward.

Refined tin use in 2017

  • Solder - 47%
  • Chemicals - 17%
  • Tinplate - 14%
  • Lead-Acid Batteries - 8%
  • Copper Alloy - 5%
  • Other - 9%

Metals most impacted by Technology

SOURCE: MIT

Price outlook

Ownership of supply is reasonably concentrated as China remains the world’s largest producer. The country has been the driver of the metals demand for many years. The International Tin Research Association (ITRI), anticipates demand for tin to remain stable but supply expected to struggle. It is predicted that this will cause a rise in price with incentive prices anticipated to be close on US$25,000/t.

Tin mine production cost projections for 2022

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