Tin and Aluminum Markets Remain Volatile Over the Next Few Years

Analysts are predicting that tin prices are going to increase over the next few years, possibly rising to as much as $40,000 per ton.

According to a new market research report from Merchant Research & Consulting, Ltd., the global tin supply will remain tight through 2013, due in large part to insufficient mining capabilities. "Tin Market Review" concludes that consumption in major users continues to grow although supply remains constrained after decades of lack of investment in new mines.

For now, high tin prices have stimulated a limited supply response, mostly from small-scale miners in Indonesia and recycling activity in China.

New mines are expected to come on-line within the next few years. A new facility in Argentina will produce tin as a by-product of silver, and another mine in Kazakhstan is scheduled to open in 2012.

Merchant Research & Consulting, Ltd. forecasts that production from these additional mines will start to ease global tin tightness by around 2013.

All indications are that the aluminum market will remain volatile over this time-frame, as well.

The "Aluminum Market Review," also from Merchant Research & Consulting, Ltd., concludes that aluminum will remain in great demand, growing 12 per cent in 2011. That means the global value of the aluminum industry will reach $99.9bn this year and will shortly break the $100bn barrier.

Merchant Research & Consulting, Ltd points out that China and India are undergoing rapid industrialization and that demand from these countries is expected to increase alumina and aluminum production capacity while lowering its operating costs. In addition, analysts predict new growth opportunities as new products and processes will appear on the world aluminum market.