The global tin market is experiencing a glut of supply entering the market amid coronavirus-related uncertainty, Fastmarkets understands.
But even with global verifiable tin stocks now estimated to be at approximately seven days' consumption, many participants believe the industry's meagre demand conditions could cripple the tin market for the remainder of the year.
Meanwhile, the prospective resumption of key refined tin production after coronavirus-related closures in March and April has left the
tin market facing its largest supply glut since the financial crash of 2008-09, with the International Tin Association (ITA) anticipating this year's figure could be as high as the 18,000-tonne surplus a decade ago.
"I'm not convinced that demand will come back until the fourth quarter of this year," a tin market source told Fastmarkets. "The problem starts now. By mid-May there shouldn't be any tin producer that isn't producing."
"With production resuming and little demand in the market, the picture looks grim, particularly if...