Tin futures surged to $32,900 per tonne in May, marking the highest level in over a month. This increase is attributed to the resurgence of trade flows in China and looming supply threats. Efforts to mitigate trade war anxieties included tariff reductions by both the US and China, which bolstered manufacturing purchases in key sectors. Furthermore, the People's Bank of China (PBoC) provided additional support by reducing loan prime rates and liquidity rates to stimulate demand.
On the supply side, officials in Myanmar's Wa State expressed willingness to reinstate tin mining quotas following a prolonged suspension of activities. However, significant delays have been encountered due to severe earthquakes in the region, which have continued to hinder production. Concurrently, recent figures from China revealed that refined tin output in April experienced a more than 8% year-on-year decline, attributed to reduced operating rates. Conversely, Alphamin Resources, a leading producer, resumed operations at its tin mine in the Democratic Republic of the Congo after previous evacuations caused by militant insurgencies.
