China: Tin price hits record high over AI-driven demand.

Storyline Tin price hits record high over AI-driven demand With the rapid growth of AI, demand for tin is increasing in China. Known for its good conductivity, low melting point and strong welding stability, tin is a key material in advanced semi computing packaging. China is the world's largest producer and consumer of refined tin. But due to declining ore grades in Chinese mines, approximately two-thirds of the tin ore used in domestic smelting is imported. At the Datun tin mine in Yunnan, the mine manager said that tin mining capacity is subject to challenging constraints like safety regulations. So, even with a surge in downstream demand, mining companies are not ready to expand output. Xu Peiliang, chairman, Yunnan Tin Company Ltd.; manager, Datun tin mine: "The mine's daily output is about 6,000 to 7,000 tons. We believe it is unrealistic to increase output from a primary ore mine. No matter how many application scenarios or how large the demand from downstream, the supply can only be this much." Since last year, major tin-producing countries such as Myanmar, Indonesia and the Democratic Republic of the Congo have experienced supply shortages due to export restrictions, geological disasters and other factors. Han Shouli, general manager, Yunnan Tin Group (Holding) Company Ltd.: "Due to the inherent characteristics of global tin resources, supply elasticity is naturally insufficient. Tin has a very low abundance in the Earth's crust, and the global static reserves-to-production ratio has already fallen to below 20 years. Meanwhile, the grade of existing producing mines is declining, and mining costs are on an irreversible upward trend. As a result, the global supply gap is likely to continue widening year by year. In the short term, tin prices are expected to remain volatile at high levels, with a tendency to rise easily but fall reluctantly." As demand for tin grows, so have prices which have recently reached a record high of about 62,000 U.S. dollars per ton. Industry watchers say elevated tin prices will be a long-term trend over the next one to two years. [Restrictions: No access Chinese mainland]