Tin prices have soared to their highest levels in nearly two years as the suspension of Alphamin Resources’ Bisie mine in the Democratic Republic of the Congo exacerbates a tightening global supply.
London Metal Exchange (LME) tin climbed as much as 9% on Friday, reaching $37,100 per tonne before settling around $36,160. The rally follows a 7.4% jump the previous day and has pushed tin prices up by 24% since the start of the year. In Shanghai, tin futures hit their daily limit of 10%, while shares in China’s Yunnan Tin Co., the country’s largest producer, surged by the same margin.
The price spike comes after Alphamin, which accounted for about 6% of global tin supply in 2024 with 17,300 tonnes produced, announced a halt to operations due to the advance of insurgent groups in North Kivu province. The company has evacuated mining personnel, with only essential staff remaining for security and site maintenance.
The disruption adds to an already strained tin market, which was previously hit by the closure of mines in Myanmar’s Wa State. Analysts at Macquarie had already forecasted a 13,000-tonne supply shortfall for 2024, a deficit likely to widen with the loss of production from the Bisie mine.
Investors have reacted sharply to the supply shock. Alphamin’s Toronto-listed shares plummeted 38% on Thursday, while Australian tin miner Metals X (ASX: MLX) has surged 22% to a three-year high, benefiting from its Renison Tin Operation in Tasmania.
Despite the surge in tin prices, market observers caution that the gains may be short-lived if Alphamin resumes operations quickly.