The latest six-monthly survey of analysts’ London Metals Exchange (LME) price forecasts, as reported by theInternational Tin Research Institute on July 29 indicated an expected rise in the average tin price next year, with the consensus view of 17 analysts seeing the annual price rising to $23,000 per tonne next year, up from $22,000 in 2013.
All of the six companies providing forecast global supply/demand balances for tin expected the market to be in deficit in both years, with an average expected supply shortfall of some 5,000 tonnes in 2013 and 2 – 3,000 tonnes in 2014.
As reported by Reuters, an Indonesian overhaul of tin trading rules which raises minimum purity levels is expected to greatly reduce shipments from the world’s top refined tin exporter for a few months, which will potentially push up tin prices.
Last week, Stellar announcing that drilling at the Heemskirk Project has extended tin mineralisation at the Montana deposit by a further 120 metres down plunge. Drilling also confirmed the continuity of tin mineralisation between historical drill holes and current holes and increases prospectivity of the zone between Montana and Severn.
These results support the potential extension of a seven-year mine life identified in the recently completed Pre-Feasibility Study.
Sources: ITRI, Reuters