Tin’s prognosis has dimmed as a result of deteriorating macroeconomic fundamentals, a strong currency, and increased inflation. As a result, analysts have decreased their prediction for the metal’s price for 2023 and this year. Tin’s prices have fallen by 11% over the previous month due to the bleak prognosis for the metal, which is used to solder electronic and electrical components, plate cans, and coat bearings. Since the beginning of 2022, the price of metal has decreased by over 52%. Currently, the price for prompt cash delivery is $18,125 per tonne, while the three-month London Metal Exchange (LME) contract is quoted at $18,101 per tonne.
According to research firm Fitch Solutions Country Risk and Industry Research (FSCRIR), “We estimate that prices will remain pressured over the rest of 2022 and into 2023 as the global economy continues to decline and major economies slide into recession.” While supply has been “pretty steady,” according to the research firm, the outlook for demand has dimmed. In light of these developments, Fitch Solutions lowered its prediction for the price of tin for 2020 from $31,650 per tonne to $30,000 per tonne. From $33,000 to $20,000, the forecast has been reduced quite significantly for 2023.
The price projection has been cut after a sharp decline in prices in the second and third quarters of this year. It stated that a variety of demand-side variables contributed to a significant drop in prices in recent months and will continue to exert pressure on pricing through 2023. Consumer electronics purchases, a significant source of demand for tin, will decline as inflation rises. In addition, the dollar’s strength is limiting the demand for a variety of industrial metals priced in the currency, and unfavorable market sentiment has kept a lid on commodity prices generally, according to Fitch Solutions.