MSC: It’s business as usual for tin shipments
PETALING JAYA: Malaysia Smelting Corp Bhd (MSC), one of the world’s largest refined tin producers has refuted a Reuters report, and says that delivery of shipments to its customers are on schedule and its operations are “business as usual”.
“We will investigate this matter and will provide an update where necessary. As always, we value our customers and remain committed to them,” it said in a statement yesterday.
Reuters had reported that the company was delaying tin shipments to customers around the world due to a shortage of concentrate.
Tin is a vital ingredient for electronic components for mobile devices, electric vehicles, robotics, renewable energy and energy storage industries.
MSC’s refined tin production last year was 27,085 tonnes, Reuters said, citing the company’s annual report, making it the world’s third-largest refined tin producer after China’s Yunnan Tin Co Ltd and Indonesia’s PT Timah, it added.
Quoting a source, Reuters said MSC had told customers that deliveries could take two-three weeks instead of the usual three-four days and that shipments had been delayed since February.
“MSC is short of concentrate and has pushed some delivery schedules out by four weeks or so,” it quoted another source as saying.“The problem has been brewing for weeks.”
Reuters also quoted sources saying that tin concentrate supplies from Nigeria and the Democratic Republic of Congo have declined this year due to lower prices, while supplies from Myanmar have been on a downtrend for some time due to depletion of easy-access reserves.
“Refined tin exports from Indonesia rose in April but over the past couple of years they have been erratic.
“Nervousness about shortages pushed benchmark tin prices on the London Metal Exchange to US$19,500 a tonne on Friday, their highest in more than a week and up more than US$900 a tonne, or about 5%, since May 31.”
Quoting a base metals trader, it noted that tin supplies to South Korea, Japan and some parts of Europe were affected.
“The premium or backwardation for the cash over the three-month tin contract is around US$130 a tonne, up from US$60 a tonne in the middle of April. It touched US$340 a tonne last month, the highest since September 2015.”
Source: TheStar