Repercussions for the tin market

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“To the best of my memory in my short stint in the tin business, this may be the first time the KLTM is suspended due to the stoppage in MSC’s production,' MSC said.

Bhd during phase one of the National Recovery Plan has led to an indefinite suspension of the Kuala Lumpur Tin Market .

He told StarBiz that “although the KLTM is technically independent of MSC, other than being related in trading, the physical tin market is also linked by the supply chain of the tin being traded and MSC happens to be the only smelter in the country and supplies over 95% of tin to the KLTM”.The current restriction on operations has also disrupted its tin supply to both the London Metal Exchange and the KLTM, added Yong.

During the movement control order 1 and MCO 2, MSC was classified as an essential and integral part of the global supply chain by the International Trade and Industry Ministry. “Even the collection of royalties and levies by the state departments will not be spared. These are just a few of the collateral damages.”The group has to source and receive tin ore from third-party miners from all over the world such as Brazil, Peru and Indonesia, among others.

To date, half of the global tin demand is used as tin solder, which is needed to attach the electronic components to circuit boards as well as to connect cells in a solar panel.

 

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