2024-04-18 17:06:00
(Agence Ecofin) – Less publicized than copper, cobalt or coltan, tin is another metal used in electronics that the DRC has in abundance. The country, which accounts for around 8% of the global supply, has nevertheless for several months had increased difficulties in exporting its production.
The spot price of tin reached $32,640 per tonne on April 17, compared to $25,175 at the end of December 2023. This increase of almost 30% since the start of the year is partly driven by the supply difficulties, particularly those encountered in the DRC through artisanal production.
According to the International Tin Association (ITA), uncertainty has increased in recent months in North Kivu, one of the most important tin-producing regions. The reason is the activity of the M23 rebels who directly disrupt the transport of ore by establishing roadblocks, which has an indirect impact by reducing the opening hours of border posts in the east of the country. Furthermore, the 3T mineral traceability program (tin, tantalum, tungsten) suspended its operations in Masisi, reducing the supply of certified tin.
« The ongoing conflict poses a threat to important supply areas and routes that are crucial for the trade in tin concentrate. Delays can be expected as mineral shipments are diverted north and south, away from rebel-held areas», Indicates ITA.
Remember, these disruptions in the DRC, which represents about 8% of the world’s tin supply, come on top of other challenges already weighing on supply. The world’s largest exporter, Indonesia, has actually reduced its shipments due to delays in the granting of licenses and a corruption investigation targeting foundry managers, reportsBloomberg.
To this must be added the reduction in supply from Burma, another major tin supplier, all in a context of increasing demand. The development of artificial intelligence actually represents a growing market for metals used in electronics, such as tin.
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