The increase in the world tin prices is mainly a result of a deficit in the world tin market.
What is deficit?
Deficit is also known as "shortage". We will cover that in the Lecture 4.
Shortage happens when the demand is greater than the supply. Supply may remain constant or the demand is simply increasing faster than the supply.
A shortage/deficit is likely to push the price of tin up.
Why is there a shortage in the place?
Which country/countries contribute(s) to the significant increase in the demand for tin?
The answer is China.
Large increase in Chinese demand China is by far the largest market for tin, and accounts for the bulk of the increase in world demand since 2002. In 2003, Chinese consumption had risen to 24% of the world total, followed by that in the USA (14%) and Japan (9%). Chinese tin consumption is expected to total 80kt in 2004, reducing exports still further in the absence of any major new production.
The link
http://www.the-infoshop.com/press/ros24981_en.shtml
Why is it that China demand for tin so high?
4 comments:
bcoz the chinese need those tins to manufacture "circuit board". Like our kemahiran hidup lesson during high school, we use those to solder.
Btw, what is 80kt??izzit 80 kilo-tan
zad ronaldo & not 2.3
yes, due to the surge in the demand for consumer electronics and China is the place to manufacture these items due to
i. Ready market for domestic consumers
ii. Terribly low labour cost
iii.Ready pool of labour from huge population
iv.Abundance of raw materials/natural resources
v. Govt policies encouraging exports
and international trade
vi. Current competitiveness of RenMinbi(RMB) in the world market, relative to US dollar
so,how about malaysia?
i think that tin prices in malaysia will also increases..
does malaysia increase the export of tin to china?
Does malaysia increase the export of tin to china?
We used to but not anymore now. Our tin industry is more or less dormant
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