LONDON – According to a Reuters report, tin prices at record highs are expected to curb demand by the packaging and electronic industries, and may discourage the use of the metal in emerging technology areas.

Tin, widely used in solder for electronic products, hit $24,600 a metric ton last week, up 45% in 2008.

"Everyone is quite worried about what impact the higher price might have on demand," said Peter Kettle of tin consultant firm ITRI.

Solders account for around 50% of global tin consumption, estimated at around 365,000 metric tons last year. High prices could curtail usage, as well as causing cause a slowdown in the transition to high tin content lead-free solders, creating problems in the electronics sector.

"There isn't any risk of a major switch in the next few years… but [it will probably] slow the continuing transition from the conventional tin-lead solders to lead-free solders," Kettle said.

The move to lead-free solders has been the strongest growing market for tin in recent years. Currently, lead free solder accounts for 60% of the market, and higher tin costs would make it difficult to increase market share, according to Kettle.
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