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Tin traded at a new all-time peak on the London Metal Exchange (LME) to maintain its stance as the best performer among the metals complex in 2021 fueled by supply concerns in Myanmar, the world’s third largest tin producer.

Three-month tin price on the LME, which has risen by 63 per cent since the start of the year, ended the week 1.4 per cent higher at $33,600 per tonne, its highest recorded level.

Alastair Munro, commodities analyst at Marex, a UK-based liquidity hub, observed that tin’s ascent continues its path driven by shipping logistical issues and supply pressures from Myanmar. Munro added that the Southeast Asian country is struggling to contain rising cases of Covid-19 and a political crisis, further raising the bar on tin’s price in the world market.

Citing a series of capacity closures in 2021, Adam Slade, an analyst at Roskill, a Wood Mackenzie business, said the tin market is being hit by a list of never-ending events that keep hindering supply, leading to higher prices for the metal.

“The re-opening of some smelters will ease tightness in the market but prices are expected to remain above $30,000 tonnes with a firm floor of $25,000,” he added.

Further lending credence to tin’s surge is the latest report by the International Tin Association which noted that all producing countries, except Congo, Nigeria and Russia, experienced a huge decline in mining last year.

It pointed out that tin ore production in Myanmar stumbled 21 per cent, while Indonesia, Peru and China recorded contractions of 15 per cent, 9 per cent, and 4 per cent respectively.

The association also noted that the 380,000-tonne global tin market is expected to be in a 10,200 tonnes deficit this year which will deepen to a 12,700 tonnes shortage in 2022.