Tin Price Retreat Again and Dipped Below $20,000 - icdx.co.id
  • In a week (25/06 – 29/06) the price of ICDX’s Tin moved down 2.93%.
  • Highest volatility reached 1.40%.

Market Review

President Donald Trump accuses China of unfair trade practices and is threatening to put new tariffs on as much as $450 billion of exports from China, this would be a bad news for export powerhouses such as Taiwan, South Korea and Malaysia, which sell goods to China that are used to make products exported to the United States - from automobiles to consumer electronics. The United States has so far announced 25% tariffs on $50 billion worth of Chinese exports, the first wave of which will take effect on July 6.

Meanwhile, The low season in China slowed the consumption of tin, which left supply to exceed demand. The supply also increase supported by Indonesia as the largest tin exporter has exported 11,085 mt of tin ingot last month, up 80% from May last year and much higher than the 2,959 mt seen in April, this drove up the tin global inventories.

Timah Weekly Chart 180625 - icdx.co.id

Price Performance Indicators

Previous Week % Change
ICDX $ 19,850.00 -2.93%
LME $ 19,675.00 -4.00%
KLTM $ 19,700.00 -3.90%
SHFE ¥ 143,000.00 -0.29%
USD/IDR Rp 14,404.00 +2.12%

Market View

Temengor Tin Project

Elementos Limited, has announced the signing of a Memorandum of Understanding (MOU) with Empire Tin Mining Sdn Bhd to negotiate a Farm-in and Joint Venture agreement on the Temengor Tin Project in Perak, Malaysia. Under the MOU, the two parties have until 20 July to finalise the terms of the proposed Farm-in and Joint Venture agreement. There are recent signs that mine production in the country is becoming revitalised with tin mine production totalling 4,576 tonnes in 2017 according to the annual report of the Malaysia Smelting Corporation. Although this total is well below the 1972 peak of 76,800 tonnes it still represents the highest volume since 2001.

Asia Pacific Trade Agreement (APTA)

China will reduce tariffs on thousands of products from India and South Korea, as well as the smaller economies of Sri Lanka, Bangladesh and Laos. The reductions are due to take effect on July 1. They're part of an agreement between the six countries called the Asia Pacific Trade Agreement (APTA), that covers more than 10,000 goods in total. Many of those products could help replace imports from the United States that will become more expensive in China if the two countries go ahead with tariffs on $34 billion of each other's exports next week.

WEEKLY ECONOMIC DATA & EVENTS CALENDAR

Date Data/Events Actual Expectation Previous
30/Jun China - NBS Manufacturing PMI (Jun) 51.6 51.9
1/Jul Japan - Tankan Large Manufacturing Index (Q2) 22 24
2/Jul Japan - Nikkei Manufacturing PMI (Jun) 53.1 53.1
2/Jul China - Caixin Manufacturing PMI (Jun) 50.9 51.1
2/Jul Uni Europa - Markit Manufacturing PMI (Jun) 55 55
3/Jul UK - PMI Construction (Jun) 52.0 52.5
4/Jul Japan - Markit Services PMI (Jun) N/A 51
4/Jul China - Caixin China Services PMI (Jun) N/A 52.9
6/Jul Japan - Preliminary Leading Economic Index (May) N/A 106.2

Source: ICDX Research




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