Indonesia Tin Suppliers Struggling to Meet Demand
BANGKA ISLAND, INDONESIA – Indonesian workers are dredging 33% less tin ore than in 2008, as consumption has surged and reserves are dwindling, say published reports.
Workers today are hauling no more than 88 lbs. of ore daily, Bloomberg reports, as sharp demand – up 14% in two years – has cut availability.
Nevertheless, tin pricing has followed a recent rollercoaster, having risen 51% on the London Metals Exchange in the past year, only to fall 22% sequentially in May. Still, prices are expected to rally 15% to $30,000 a metric ton by year-end, according to Bloomberg.
Solder for electronics and other uses constitutes 52% of demand, says ITRI, the trade group for tin producers. China is the largest consumer, with estimated demand for 157,000 tons this year.
Indonesian producers mined more than $1.7 billion worth of tin ore in 2010, or some 155,000 tons.
