Tin consumption set to rise 2%

PT Timah, the world's second-largest tin producer, expects the metal's consumption to advance 2 per cent this year amid forecasts of a global deficit. Demand for the metal, used to solder components in almost all electronic equipment, will continue to increase over the next few years, the Pangkalpinang, Indonesia-based company said Thursday in a statement accompanying first-half results. Rising tin demand may help to stem a 30 per cent drop in the price of the metal from a record in April and potentially boost profit at producers including Timah and Yunan Tin Co. Yunan Tin is the world's largest producer based on 2010 output, according to industry group ITRI Ltd. ITRI expects the world to be short of 11,100 metric tonnes of refined tin this year as producing countries such as Indonesia, China and Peru are struggling to meet demand for the metal. Tin for three-month delivery traded at $23,450 a ton yesterday. The metal climbed to a record $33,600 a ton on April 11.