Tin prices surged to a seven-month high Jan. 27 on mounting supply concerns as Chinese demand rebounds and amid deadly protests in Peru, home to the world's largest tin reserves and resources.
The London Metal Exchange three-month tin price has climbed 28.9% since the start of the year, according to S&P Global Market Intelligence data. Chinese imports jumped to 31,115 tonnes in 2022 from just 4,900 tonnes in 2021, London financial advisory SP Angel said in a Jan. 25 note.
In Peru, Minsur SA's San Rafael tin mine temporarily suspended operations Jan. 12 as the area saw some of the worst violence in the country's current political crisis, sparked by the ouster of former President Pedro Castillo. The federal government on Jan. 15 extended a state of emergency by a month for the Puno region, where the mine is located.
The protests started in early December 2022 after Castillo's impeachment and arrest for trying to dissolve Congress and install an emergency government. The death toll was 58 as of Jan. 28, according to Reuters.
San Rafael is the second-largest tin project by reserves and resources globally, with more than 1 million tonnes of tin contained in ore, according to Market Intelligence data. Mine owner Minsur, the world's third-largest tin producer, was not directly impacted by protests but halted operations in solidarity with the victims, according to a Jan. 20 note from the International Tin Association.
Price ring
The London Metal Exchange three-month tin price soared 9.43% week over week to $32,100/tonne on Jan. 27, its highest since June 2022, according to Market Intelligence data.
Lead rose 4.6% week over week to $2,182.25/t. Nickel edged up 0.46% to $28,673.50/t, aluminum by 0.36% to $2,591.50/t and zinc by 0.09% to $3,438.75/t. Copper slipped 0.7% to $9,242.24/t.
Gold closed the week flat at $1,928.09 per ounce, after hitting a midweek high of $1,934.80 on Jan. 24. Palladium plunged 5.14% to $1,642/ounce, platinum fell 1.37% to $1,010/ounce and silver slipped 0.59% to $23.73/ounce.
The Platts IODEX 62% CFR North China closed at $122.66/t on Jan. 27, up from $121.69/t on Jan. 20.
Talking points
The International Tin Association said it is monitoring the "ongoing, dynamic situation" in Peru closely, where "protests were recently reported to be moving towards the capital Lima." The protests have also impacted Peru's copper production.
The association said it is also awaiting word from Indonesia on a proposed export ban, which could bring further price volatility.
"With demand still held back and a lack of clarity on China's COVID wave, the stage looks set for a bumpy first quarter [of 2023]," the International Tin Association said.
Shanghai Futures Exchange tin hit a seven-month high of 244,650 yuan/t in early Jan. 30 trading but fell back later in the day, the Shanghai Metals Market said. It was the first trading session after the Lunar New Year holiday.
However, inventories are likely to keep rising in the short term due to weaker-than-expected demand, the fear of high prices and a mismatch of supply and demand, as downstream companies are still taking Lunar New Year holidays while upstream companies return to work, Shanghai Metals Market said.
Financings
ArcelorMittal SA led a US$120 million fundraising for green steel startup Boston Metal, which will use the proceeds to advance its pilot plant outside Boston and support the construction of its first commercial plant in Brazil.
Asante Gold Corp. seeks to raise up to US$50 million at C$1.80 per share for exploration and development of its mineral properties and general corporate working capital.
GoGold Resources Inc. aims to raise gross proceeds of about C$65 million from the sale of 28.9 million common shares at C$2.25 each on a bought-deal basis.
Eurasian Resources Group BV plans to initially invest US$50 million in tech-enabled exploration for battery metals in Saudi Arabia, a move also aimed at growing its presence in the Middle East and North Africa.
As of Jan. 27, US$1 was equivalent to 6.78 yuan.
S&P Global Platts is an offering of S&P Global Commodity Insights.
S&P Global Commodity Insights produces content for distribution on S&P Capital IQ Pro.
