Tin deficiency can lead to an increase in the cost of material
Despite the persistent drop in prices for many metals and alloys in recent times, tin, sowing the sad fate has passed. In modern industry, there has been a persistent deficit of such material for several days already, which promises to ensure a constant and steady rise in the cost of such raw materials. According to the Bloomberg research center, the price for tin has now reached a record figure over the past few years, which amounted to forty thousand US dollars for each ton of material. The source of such a favorable forecast of analysts was the reassurance of one of the largest suppliers of tin concentrate in Malaysia. The management of the metallurgical sector Malaysia Smelting Corp is very optimistic and believes that the rise in prices for tin will continue for a long time.
The price of the material in the light of a persistent deficit does not frighten the buyers. Even the commissioning of new production lines will not significantly affect the change in the cost of tin raw materials, at least five years. After all, the technology of mining such a product is very complex and time-consuming. Therefore, the capacity expansion in this area is a long process. If we add to all of the above the constant decline in the quality of ore and the drop in the quality indicators of the finished trade unit associated with this fact, then the optimism of well-established manufacturers is understandable.
Last year, the heyday of the tin industry left almost all the non-ferrous metallurgy behind. By the way, the primary factor that led to the growth in the cost of tin was the development of certain types of industry in China and African countries associated with the use of scarce material. Interruptions with Indonesian supplies of an important product further added to the piquancy of the situation. Not so long ago, Indonesia announced the forthcoming reduction of its capacity for the production of tin. This decision is associated with unfavorable climatic conditions in the Asian territories and the prevalence of torrential rains throughout the continent. The decline in supplies of tin from Indonesia worked to the benefit of all other producers of the scarce product. By the way, we can somewhat reduce the bright prospects for enriching Malaysia Smelting Corp can establish supplies of such demanded raw materials from Russia and Australia. The tin production of these countries is gradually gaining strength and increasing its turnover.
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