A Reflection on Tin Commodity: Sunset To Sunshine Industry?

In line with other metal based commodity, tin prices have skyrocketed from a mere USD5k per metric tonne about 15 years ago to more than USD24k this year! That's almost a whopping 400% increase!!

First and foremost some background on tin....this is a metal that bonds readily to iron, and has been used for coating lead or zinc and steel to prevent corrosion. Tin-plated steel containers are widely used for food preservation, and this forms a large part of the market for metallic tin.

In the mid 19th and early 20th century, there has been a huge influx of Chinese immigrants to the then Malaya (Today is known as Malaysia) for the then booming tin mining industry. A number of rich towns (such as Ipoh and Kuala Lumpur) were borned as a result of this booming industry. My dad, also a Chinese immigrant (from the Hakka Province in Kwang Tung), had settled in this piece of foreign land due to the lure of tin mining and potential of riches. From mining to trader of tin, it was my dad's predominant business until the end 80s. Then, tin prices hit rock bottom to the point of many traders or miners were running their businesses at a loss! The consequences were many tin traders were forced to shut down their businesses. The same happened to my dad's business...

I remember vividly that my dad used to tell me that tin trading was a sunset industry. So he never believed in imparting any knowledge to me about the trade!

How times have changed!

New Demand in 90s
The shift in environmental legislation regarding the banning of lead in solder has come to the rescue of the tin market as tin had had a torrid time since the mid-1980's when prices rose to levels that caused manufacturers to switch to other raw materials. However, with a consumer economy emerging in China and gathering pace in other parts of Asia, demand for electronics and hence solder lead to strong tin demand. In addition as China's rural population moves into the cities, more food will need to be packaged and this benefits tin demand.

Ironically China is now one of the major tin producing country in the world!

Today some of my distant family members are still running the trade, albeit at a smaller scale, as Malaysia's production is smallish compared to the rest of the world. However, as prices are so good, the profit margins are exorbitant!

How I wish I could be the one inherited the knowhow and business from my dad and continued with the legacy!

Today tin is commonly traded in many countries, including Malaysia, of course.