Persistent demand from China is supporting nickel and tin prices. In addition, there are now strikes in the producing country of Indonesia. By Julia Groß, Euro am Sonntag
C.hina’s need for raw materials shows no signs of fatigue. The recovery of the Chinese economy seems extremely robust, especially in industry: According to the National Statistics Office, the official purchasing managers’ index for manufacturing rose to 51.5 points in September, higher than economists had forecast. The corresponding barometer from the Caixin media group also continued to show growth at 53 points.
The industrial metals, for which China dominates demand, benefit from this in particular. The copper price alone has risen by around 40 percent since its low at the end of March. The JP Morgan Industrial Metals Index rose by almost 30 percent during this period.
Myanmar delivers less
In the case of tin, China buys around half of the world’s raw material supply. The domestic tin refineries apparently cannot cope with the mass of orders, which mainly come from the semiconductor industry. These factories get their tin mainly from Myanmar, where half of the mines are currently under water due to storms. “The tense situation that has existed for two months should therefore continue in October. Therefore, China could increasingly buy refined tin on the world market again,” says Daniel Briesemann, raw materials analyst at Commerzbank.
Along with Myanmar, Indonesia is one of the largest suppliers of tin, as well as