HANOI- Tin prices, which have rallied in recent months to near two-year highs, could be bolstered further by supply disruptions, ongoing geopolitical conflicts, fund inflows in the event of interest rate cuts and stabilizing demand, analysts say.
Benchmark three-month tin on the London Metal Exchange hit $36,050 a metric ton in April, propelled by production problems in Myanmar, Indonesia and the Democratic Republic of Congo, which accounted for 43 percent of global tin mine production in 2023 according to United States Geological Survey data.
Tin has gained 31 percent this year, making it the best performing base metal, on funds flowing into the sector to hedge against inflation and as hopes of rate cuts grow. Tin’s gains have exceeded those of investor favorite copper.
On the supply side, Project Blue analyst Jack Anderson said it remained unclear whether tin mining operations in Myanmar’s Wa State would resume within the next six months, as some analysts expected.
