Tin price hits week high on concerns about slow restart of Myanmar supply

Tin prices hit a one-week high on Wednesday on concerns that the resumption of supply from Myanmar’s tin-rich Wa State would take longer than previously expected, traders said.

The metal, mainly used for solder in electronics and semiconductors, fell to a one-month low last week with bets that supply from Wa would recover as officials allowed the resumption of full-scale production after an almost two-year ban on mining in the region.

“Wa is still surrounded by uncertainty over the resumption,” said a tin trader.

Myanmar is the world’s third-largest tin producer and a dominant supplier to China. Wa State suspended all work at mines in areas it controls in August 2023 to protect resources.

The pace of resumption in Wa is slow with operators of some mining areas hesitant to pay higher licensing fees and strict government controls on the transport of equipment and personnel, said Tom Langston, senior market intelligence analyst at the International Tin Association.

“We are now more sceptical about a quick recovery in Wa and meaningful increases in production and exports are not expected until July or August,” Langston said.

The delay coincided with tight feedstock supply in China, with some smelters considering output reductions, he added.

Benchmark three-month tin on the London Metal Exchange rose 2.1% to $32,050 per metric ton by 1402 GMT, after hitting a one-week high of $32,425. It is up 5% this week.

Tin inventories in LME-registered warehouses are down 45% this year to 2,605 tons, the lowest since mid-2023, with 24% of the stocks marked as being prepared for delivery.

However, the spread between LME cash prices and the three-month tin contract remains at a discount, last at $79 per ton. A premium would have indicated concerns about nearby supply in the LME system.

(By Polina Devitt and Hongmei Li; Editing by Rod Nickel)