Myanmar suspends tin mining in Wa state from Aug'23

Myanmar - the third-largest producer of tin ore - is suspending mining of tin and other minerals as of August 2023 in Wa State to conserve mineral resources, as per a Japan Metal Daily report. It's unclear when mining will start up again, which has sparked worries about possible shortages in the global tin market. It is to be noted that 10% of world's supply of tin concentrate comes from Myanmar.

The country is a major supplier of tin concentrates to China, which is the leading producer of refined tin worldwide. Two-thirds of China's imports, or 48,000 t, came from Myanmar in 2022. Due to the mining ban, China's production of tin bullion may be significantly impacted.

Due to supply issues, the three-month contracts on the London Metal Exchange (LME), which serve as the global benchmark for tin bullion prices, increased 8% to $26,755/t on 18 April 2023. Prices have dropped 40% when compared to the same time a year ago, yet the market for solder for electronic components is still weak. Notably, tin is used as a raw material by domestic solder producers in Japan.

Overall, the halting of tin mining in Myanmar's Wa State might have a big impact on the world's tin market, especially on China's production of tin. However, slowing demand may only cause a brief increase in LME prices.

Note: This article has been published in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.