Price Performance Indicators

Focus:

1.   In a week (29/5-2/6) Tin ICDX's performance weakened by 0.59%.

2.   The Fed's Hawkish statements Makes the dollar stronger.

Market Review

ICDX tin price movement weakened by 0.59% in a week to a level of 26,950 influenced by the Fed's hawkish statement which made the US dollar index strengthen.

The negative sentiment came from the US Fed making hawkish statements, saying that inflation was still too high at the moment, and believing that there would be two more interest rate hikes. This hawkish statement made the US dollar index strengthen. In addition, data on US GDP and employment in the first quarter showed that the US economy was relatively resilient, so that the improving macro sentiment helped make the US dollar index move slightly up.

On the other hand, the driving force for tin prices came from fears of potential US defaults subsiding after the US Senate passed a law regarding lifting the government's $31.4 trillion debt ceiling after US President Joe Biden and Speaker of the House of Representatives Kevin McCarthy reached an agreement after tense negotiations. The deal prevented the first default in history. Furthermore, supply concerns after the main tin-producing region in Myanmar repeated its plan to suspend mining later this year.

Market View

The regulation of nickel and tin as Indonesia's critical minerals aims to maintain reserves and resources of nickel and tin as the main minerals in supporting the electric vehicle battery ecosystem and battery energy storage system (BESS) as supporting infrastructure for the energy transition in Indonesia.

A global tin tin crisis will occur if Indonesia begins to stop tin exports in 2023. The global tin crisis is accelerated by the policy of the Wa State Government in Myanmar to announce the suspension of tin mining activities starting in August 2023 to protect the remaining resources in the Wa region resulting in skyrocketed tin prices.

WEEKLY ECONOMIC DATA & EVENTS CALENDAR

Source: ICDX Research