Price Performance Indicators

• In a week (7/3 - 11/3) the price of ICDX Tin rose more than 6 percent.   
• The highest volatility reached 3.44 percent. 

Market Review

The ICDX tin price at the close of the second week of March closed higher more than 6% on a weekly basis. The tight supply from producing countries, coupled with the increasing costs of transportation, especially through or to Europe, triggered by the Ukraine conflict, became positive catalysts that pushed tin prices to continue their bullish rally. The price of the tin before the start of the Russian invasion of Ukraine was at the level of $44,000 per tonne, boosted up to reach the level of $50,000 per tonne, or jumped more than 10 percent after the invasion.

From Indonesia, PT Timah Tbk reported a decline in both production and sales throughout 2021. Production of tin ore and tin metal decreased by 37.95 percent and 42.09 percent, respectively, while sales fell by 52.31 percent. For tin export transactions conducted through ICDX in February, it reached 2,472.41 metric tons, an increase of 1492% on a monthly basis, but when compared to the same period last year, it decreased by 24.80 percent.

Meanwhile, the latest report from the Shanghai Metal Market (SMM) showed that China's domestic refined tin production fell 10.48% to 12,165 metric tons in February. Fewer effective working days in February as well as several smelters still under maintenance triggered the downturn. SMM also added that March output is expected to increase to 13,450 metric tons.

Market View

Covid Is Booming, China Is Back In Lockdown

The Omicron variant that triggered the Covid outbreak has surged again and has spread to 18 provinces, forcing the Chinese government to re-impose a lockdown to 10 regions, including the city of Shenzhen, which is China's technology center. This situation has sparked fears that it will disrupt the balance of the global tin market because China is the world's largest producer and consumer of tin. The supply of tins raw materials to China has been disrupted after the discovery of a Covid case in Panghsang, Myanmar at the end of last February which caused the border to be closed until early March. Panghsang City is an important distribution route for the transportation of tin production in the Man Maw area of Myanmar to China. 

WEEKLY ECONOMIC DATA & EVENTS CALENDAR

Source: ICDX Research