Tin Market Overview

Key Areas of Tin Application

World Tin Consumption Structure

Tin is an indispensable metal for electronic, chemical and food packaging industry

Chemicals 14%

Solder 54%

Tin plating 16%

Brass & Bronze 6%

Glass 2%Other 8%

Source: ITRI

Tin World Consumption Dynamics

Stable long-term growth.

Demand for the metal increased in the 2000 due to the transition to lead-free solders applications based on new regulations in China, EU and Japan (IDEALS).

IDEALS Program is designed to increase service life of electronics and improve environmental aspect of electronics production while transiting to lead-free soldering.

The tin consumption growth in solders is mainly due to environmental restrictions in lead application in place in EU, USA and other countries;

Global tin application in key areas, apart from solders generally remains stable since 2004 despite price rises.

Average consumption growth, 1970-2014

Tin

Crude

Nickel

Aluminium

Copper

Iron Ore

0.00% 1.00% 2.00% 3.00%

Since 2000

20002001

20022003

20042005

20062007

20082009

20102011

20120

50

100

150

200

250

300

350

400

Solder

Tin plating

Chemicals

Brass & Bronze

Glass

Other

Tin World Consumption Dynamics

Source: ITRI

Russia

Australia

Malaysia

Vietnam

Brazil

Congo

Kazakhstan

Bolivia

Peru

Indonesia

China

0 20 40 60 80 100 120 140

GLOBAL TIN PRODUCTION AND CONSUMPTION GEOGRAPHY

World Consumption Structure

Tin production, Ktpa

*Syrymbet Production forecast

Other countries; 7%

Japan, 8%

USA, 9%

SE Asia, 18%

EU, 17%

China, 41%

Source: ITRI

Основной Основной Основной Основной Основной Основной Основной Основной Основной Основной 0

5 000

10 000

15 000

20 000

25 000

30 000

Tin price historical chart

ITC regulations

Reserves purchase in USA

Strategic reserves sales

Production growth – Malaysia, Thailand

EU, China, Japan - RoHS

directivesProduction growth -

Indonesia

Tin price, $

Current tin price= $20, 500

Source: ITRI

Tin Market Balance and Tin Price Dynamics

  2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Tin production, K t346,7 357,1 353,8 339,5 335,6 354,6 354,3 334,7 338,4 345,8

Government reserves sales, K t

7,7 9,3 7,7 3,7 0,0 0,0 0,0 0,0 0,0 0,0

Tin consumption, K t335,5 367,7 372,7 350,7 322,3 362,2 359,4 339,5 348,3 356,6

Market balance, K t18,9 -1,3 -11,2 -7,5 13,3 -7,6 -5,1 -4,8 -9,9 -10,8

Stock reserve distribution            

LME 16,7 13,0 12,2 7,8 26,8 16,4 12,1 12,8 9,7 7,0

Producers 20,9 24,1 25,7 35,4 28,0 20,8 25,0 15,9 14,1 12,0

Buyers 11,4 12,6 13,7 12,5 11,6 11,1 9,6 10,7 11,0 10,0

Total 49 49,7 51,6 55,7 66,4 48,3 46,7 39,4 34,8 29

Source: World Bureau of Metal Statistics, ITRI, US Bureau of Mines

Price scenarios to 2023

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

0

10,000

20,000

30,000

40,000

50,000

60,000

Central Forecast

Weak demand scenario

Supply constraint scenario

US$/tonne

Forecast range 2019 – 2023:

$20,000 - $50,000/t

Source: ITRI

ТОР 10 Metal Tin Producers

*Production Forecast

# Company 2013, Kt1 Yunnan Tin (China) 69,760

2Malaysia Smelting Corporation 37,792

3 PT Timah (Indonesia) 29,600

4 Minsur (Peru) 25,399

5 Thaisarco (Thailand) 22,847

6 Yunnan Chengfeng (China) 16,600

7 Guangxi China Tin (China) 14,034

  Syrymbet (Kazakhstan) 12,000 - 14.000*

8Metallo Chimique (Belgium) 11,350

9 EM Vinto (Bolivia) 10,800

10 Gejiu Zi-Li (China) 7,000

Source: ITRI

Why today is the best time to invest in tin

1. Global tin shortage – recent years production level is below consumption and the situation deteriorates.

2. Low level of stock inventory – a current global metal tin stock inventory may sustain a 34-day consumption as compared to 1960, when the stock inventory would sustain years of global demand

3. The days of easy-to-mine Asian placer tin are now over. For instance, production dropped from 77 Kt to 2 Kt in Malaysia, from 35 to 2 K t in Thailand, from 140 to 80 K t in Indonesia. Tin production cost is up to $25,000 /t.

4. Due to low tin prices in the 1990 and 2000 there haven’t been any new deposits developed; there is no any option as to quickly rump up the production in place of depleted deposits. All major current operations have already seen their production top and are currently in recession.  

5. Tin part in cost of ANY final product is below 1% (averaging 0.1-0.2%). Any future tin price rise will not have any impact. Tin is an absolutely green metal, posing no harm to human.

6. Tin price is expected to rise.