Tin prices have reached a seven-year high following a buying frenzy based on increasing manufacturing demand as the metal becomes vital to meet the demand for electronics.
Crushed tin ore; tin is heavily used in the electronics industry, which has seen a surge in demand due to the pandemic. Credit: Fairphone / Flickr
Tin is used to make solder, which helps bind together wires and circuit boards, and has seen a soar in demand due to it being vital in the electronics industry.
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Electronics has seen a surge in popularity owing to the coronavirus pandemic which has seen an increase in remote working, need for recreational electronics such as phones, tablet and games consoles, as well as increased need for interconnectivity and the push towards Industry 4.0.
Electronics demand is so high, that a global semiconductor shortage has occurred, which has slightly hindered plans for many automotive and transport players wishing to switch towards electric vehicles, as suppliers are intentionally withholding supply to save for the creation of electrical gadgets.
China has also been stockpiling tin to aid in its goals of becoming completely self-sufficient in the semiconductor market, according to industry traders.
All of this has led to the price of tin being driven up more than 70% to $23400 (€19,365) a tonne.
Prices hit an all-time low in 2020 has many manufacturers and suppliers had to close owing to lockdown restrictions.
A 2017 prediction by BMI hinted prices could hit $22,000 by 2021, which it has exceeded - this is particularly impressive due to the effects the pandemic has had on global trade and supply.
Prices were also driven down by coronavirus disrupting supply chains through the shipping industry, as the pandemic caused backlogs and delays which affected global manufacturing.
The London Metal Exchange (LME) - which has recently proposed the end of open-outcry trade - has also run into a shortage of metal, signalling its demand, hitting a near-record low of 775 tonnes in storage, with a further 200 tonnes already being prepped for shipping.
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The world is currently unable to produce as much tin as is currently being used owing to a thin pipeline of new mines.
This only stands to get worse as demand for electronics continues to increase.
There have been widespread shortages on a number of electronics products during the pandemic.
PC parts and games consoles have been the most hit, with pre-orders often exceeding retailer supplies.
Distribution has continued to be heavily staggered by key players, which has resulted in retailers failing to keep up with demand to this day.
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