Metal markets and market catastrophes Flashcards
What is the symbol for tin?
Sn
What is tin and what is it used for?
Soft pliable, silver-white metal
Used for solder, alloys, tin plate
What industry uses the most tin, and in what form?
Consumer electronics
Solder- electronic
Who produces the most tin in the world?
China
What country has recently entered the tin production industry?
Brazil
With low mining costs at $2.5 per kg
In order from cheapest to most expensive, list the methods used to produce tin
Offhsore dredging
Open cast
Gravel pump
Underground mining
Who is the most vulnerable if the tin market collapses?
The places with the higher production costs
E.g. bolivia with underground mining
Why are the higher-end technologies risky?
Tin prices fluctuate over times
Risk as to whether the cost of production can be justified in the amount of tin obtained
Why are the higher-end technologies risky?
Tin prices fluctuate over times
Risk as to whether the cost of production can be justified in the amount of tin obtained
What is the London metal exchange?
A market place between supply of the mines and demand of the industry
Why is the London metal exchange necessary?
If there were no market, buyers would need to find an individual suppler and negotiate a price
There would be a reliance on a single supplier
Why did the international tin council emerge?
To prevent an international tin-glut or collapse of tin price, producer countries get together to prevent overproduction and maintain a price
What is a cartel?
A collaboration of all major producers to ensure fair play in the market, by establishing rules and not allowing a free market
What does failure of the cartel lead to?
Collapse of the tin market
When did the tin market collapse?
October 1985- the price of tin halved
