Tin to Beat Other Metals as Deficit Widens on Demand, StanChart's Zhu Says

Tin is likely to outperform other base metals as demand growth outpaces production, widening a deficit through next year, according to an analyst with Standard Chartered Bank. 

“Going forward, we expect global tin demand to continue to pick up from here,” Judy Zhu, a commodity analyst based in Shanghai, said at a seminar in Seoul. “We’d expect the tin market’s deficit to expand. We are bullish on tin and expect it to outperform the rest of base metals.” 

 

Mine output will continue to be limited, with the production outlook for Democratic Republic of Congo and Indonesia remaining negative in the next 12 months, she said. 

Stockpiles on the London Metal Exchange have fallen 42 percent this year, indicating a severe deficit, she said. 

Tin for three-month delivery advanced 1.6 percent to $26,000 a metric ton today, bringing the gain this year to 53 percent, already the best of the LME metals.Source: Bloomberg