Via AG Metal Miner
Since the beginning of 2022, tin prices have steadily declined. Indeed, such was the case for many metal prices after the March peak. However, it’s possible tin could see a reversal in the long term. As it begins to reach lower support ranges indicated by September 2020’s low, we could see tin start to push back towards the upside.
For the time being, some remain optimistic that tin will indeed bounce back in the long term. Currently, tin is already showing signals of bouncing back in the short term. After all, the metal has numerous boons to its advantage. For example, the growing global electronic industry keeps tin in high demand. Even amid supply chain pinches, energy shortages, and smelter shutdowns, the need for tin continues to increase. This gives the tin leverage other metal prices simply don’t have.
Like Other Metal Prices, Zinc Faces Numerous Road Blocks
Energy-intensive zinc smelters have suffered numerous shutdowns in the wake of the European energy crisis. This past year, numerous European zinc producers had to either shut down their smelters entirely or cut production down due to high energy costs and low supply.
Altogether, three Western European zinc smelters have closed their doors in 2022. This is not the only roadblock established by Russia’s war in Ukraine. Recent LME restrictions on Russian metal have significantly strained zinc prices and supply. In the short-term, zinc will continue to deal with these challenges. Alongside China’s own energy restrictions, zinc manufacturing will continue to have issues meeting global demand in the near, and possibly distant future.
In the long term, it may struggle to bounce back alongside other metal prices.
By the Metal Miner team
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