TIN CHEMICALS MARKET ANALYSIS

Market Challenges And Opportunities

Drivers

Increasing use of tin plating among various industries coupled with significant advancements in the chemical industry is expected to fuel demand for tin chemicals. Various product types of tin chemicals are used in chemical industries as intermediates and/or catalysts. For example, stannous chloride is used as a catalyst in the production of polylactic acid (PLA). Stannous oxalate is used as a catalyst in esterification reactions and stannic chloride is used in the production of various inorganic chemicals. Growing chemical industries in emerging economies is expected to fuel demand for tin chemicals. For instance, BASF, a key chemical producer, reported growth of 4.2% in chemical production (excluding pharmaceutical) during 2019-2021 in the emerging markets of Asia Pacific.

Development of alternatives to tin chemicals has significantly increased the threat of price-based substitutions. For instance, calcium-zinc products can be used as PVC stabilizers as they are cheaper than tin stabilizers. Iron sulphate is an alternative to stannous sulphate or stannous chloride in cement additives application. However, inferior properties of these alternatives have prevented them from penetrating deep into the market. Furthermore, increasing tin prices are considered as a challenge for growth of the tin chemicals market.

Market Restraints

Increasing tin prices are considered as a restraining factor for growth of the tin chemicals market. According to London Metal Exchange in 2020, tin prices have increased by 55% since June 2020, reaching21,750 per ton in Feb 2021. Therefore, increasing prices and development of new alternatives to tin chemicals is expected to restrain growth of the tin chemicals market.