The predicted increase in global production of electronic equipment is set to be another coup for the global tin market in 2014. According to US market research company Henderson Ventures, the annualised value of global electronic equipment production for December 2013 was US$2.13 trillion, a marked improvement over the cyclical low in April 2013 of US$1.79 trillion. This is an important development for the tin market as electronic equipment production accounts for 98% of tin solder demand which in turn represents 52% of the market for tin.
Henderson Ventures attribute the electronic equipment production improvement to increased activity in Chinese factories and increased orders for equipment in the United States. Weaker equipment sectors such as personal computers and military are declining at much lower rates than in early 2013, while tablet demand is still showing double digit growth. Communications, the largest sector, is emerging as a strong contributor to the growth.
As the chart following shows, 2014 is shaping up to be a rebound year after poor growth in electronic equipment production in 2012 followed by a reduction in 2013.