Low-profile industrial metal Tin was on a tear in 2021, reaching a record high and almost doubling in price. Short supply and strong demand created the perfect fuel for the rally this year, driving Tin futures prices (TINc1) from $20,325 per tonne to $38,860 per tonne (+91%) on the London Metal Exchange (LME). The metal's spurt outperformed other base metals such as Aluminum (+40%), Copper (+27%), and Zinc (+28%).
Tin is widely used for plating steel cans used as food containers, in metals used for bearings, and in solder. As COVID-19 cases receded, demand for the metal picked up, mainly from big users of the soldering and coating agent, such as electronics firms, automakers, utilities, solar panel makers, and appliance manufacturers.
On the supply side, inventories in the LME-warehouses in November dropped to the lowest since 1989. The Covid's spread in Myanmar caused shipment disruptions, restricting refined tin output in China. In addition, Malaysia Smelting Group, one of the largest refined tin producers, declared force majeure on deliveries in June, while Chinese tin smelters reduced the output after curbs on power consumption.
The metal's outlook for 2022 remains misty, but experts expect prices to dim as continued demand growth could increase investment to bolster metal supply.
With exposure to Tin futures, the WisdomTree Tin (TINM) gained +98% in 2021. The fund tracks the Bloomberg Tin Subindex (the "Index") and provides a collateral yield. TINM charges a total expense ratio of 0.49% and trades on the London Stock Exchange (TINM, in USD) and Borsa Italiana (TINM, in EUR).
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