Price Erosion Continues In Tin Market -
  • In a week (02/08 – 09/08) the price of ICDX’s Tin dropped 2.17%.
  • Price range between US$ 16,865 - US$ 17,075
  • Highest volatility reached 1.54%.

Market Review

Tin prices have fallen to the lowest level this week since mid-2016. In Indonesia, the tin market has been vacuum since the end of July 2019. Even in July, out of a total of 23 effective trading days, only 8 were active. This has an impact on the total tin export volume in July of 4.285 metric tons, down 42.87% compared to June. PT Timah Tbk as the only exporter that still actively trading at ICDX, is currently in the process of renewing their export permit.

On the global market, tin has been under pressure from the ongoing trade war between the US and China that has reheated after US President Donald Trump threatened to impose a new 10% tariff on imported goods from China worth 300 billion US dollars. In addition, trade tension between Japan and South Korea that have been taking place since last month have had a direct impact on the technology sector including smartphones and electronic devices, which incidentally uses a lot of tin.

The International Monetary Fund (IMF) has revised again its forecast for global economic growth for this year and 2020. The IMF predicts economic growth this year will be 3.2%, lower than last April's prediction of 3.3%. Whereas next year it is predicted that economic growth will increase 3.5%, lower than the previous estimate of 3.6%. In addition, the IMF also revised the economic growth of the ASEAN countries to 5% in 2019 and 5.1% in 2020. These figures were 1% lower than projected last April.

Tin Weekly Chart 190809 -

Price Performance Indicators

Previous Week % Change
ICDX $ 16,905.00 -2.17%
LME $ 16,900.00 -2.31%
KLTM $ 16,860.00 -2.43%
SHFE ¥ 135,530.00 +0.87%
USD/IDR Rp 14,195.00 -0.06%

Market View

Fourth Hybrid Vehicle Battery Plant in China by Toyota

Quoted from Nikkei, Toyota Motor's battery-making subsidiary will build its fourth hybrid vehicle battery plant in China as Beijing expands government incentives for low-emission autos. This new plant, to be built in 2021, will be capable of producing roughly 100,000 batteries a year, quadrupling the total capacity in China to about 400,000 units. Primearth EV Energy, also known as PEVE, produces nickel metal hydride batteries for hybrids at a joint-venture factory in China's Jiangsu Province. Two more plants are slated to go into operation next year in the world's largest auto market. 80.5% market share of PEVE is owned by Toyota while Panasonic controls the remaining stake. Beijing has been promoting what it calls new-energy vehicles, including electric cars and hydrogen fuel cell vehicles, to combat pollution and to nurture the auto sector. According to International Tin Association (ITA), demand for tin in lithium-ion batteries for electric vehicles and energy storage up to 60,000 tonnes a year by 2030.

Permanent Waste Disposal Facility in Ex-Mines Location

Lynas Malaysia said there were abandoned mines in Pahang that it could repurpose as its permanent disposal facility (PDF) if the Pakatan Harapan (PH) government approves of this solution. At least 5 possible locations have been identified for Lynas Corp to build a permanent disposal facility (PDF) for the water leach purification residue generated from its rare earth processing plant in Gebeng. Quoting a source, Harian Metro reported that the 5 locations are former gold and tin mines in Lepar, Luit, Padang Tengku, Bukit Ibam and Chini in Pahang. "These areas have high potential to be selected as the site for the PDF, given their status as abandoned mines with no new developments or industry.


Date Data/Events Actual Expectation Previous
13/Aug Japan - Tertiary Industry Index (MoM) (Jun) -0.2% -0.2%
13/Aug Japan - Machine Tool Orders Preliminary (YoY) (Jul) N/A -38%
14/Aug Japan - Machinery Orders (MoM) (Jun) -1.3% -7.8%
14/Aug China - Industrial Production (YoY) (Jul) 5.8% 6.3%
14/Aug Uni Europa - Industrial Production s.a. (MoM) (Jun) -0.8% 0.9%
15/Aug China - House Price Index (Jul) N/A 10.3%
15/Aug Japan - Industrial Production (MoM) (Jun) -3.6% -3.6%

Source: ICDX Research