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market | IST

Mixed trend in metals; tin prices up 80% this year

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Global market suggests that there is going to be a tin deficit this year and the next.

Metal space is witnessing a mixed trend.  A couple of things that the metal investors will keep an eye on is - first, Chinese real estate giant Evergrande is in a grace period of a month to pay off its immediate debts. Second, China will release more metals from its reserves and this will be the fourth time that they will be doing that.
While some pressure is seen in zinc and aluminium because of these developments in China, other metals have continued to trend on the higher side. Tin, for example, has hit record highs yet again in Asian markets. Inventories on LME declined by nearly 79 percent year-on-year and the Shanghai stocks were also at April 2016 lows. So, there has been a constant decline in tin.
There has been a strong demand for tin from lithium-ion batteries and soldering. Therefore, tin prices have gained nearly 80 percent this year itself. And the global market suggests that there is going to be a tin deficit this year and the next. While this year 10,200 tonnes of deficit is expected, next year that would increase to 12,700. Therefore, the increased demand will continue to support tin prices.
The other metal that also has seen a rebound is copper. It has witnessed a 4 percent gain in the previous week and it is trading at a one-month high. Here as well there are conversations about the deficit this year of nearly 153,000.
However the expectation is that next year there could be a surplus of 190,000, but markets do believe that the electric vehicle (EV) and solar demand would start to come in and continue to support the copper prices.
Q4 of this year could see buying coming back for many of these metals.
Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.