[10 Key reasons on why you should relook at MSC]
1. Even without the participation of institutional investors, MSC has surged 230% with minimal selling pressure. When big insti funds starting to notice MSC, potential gains might further be unleashed.
2. Straits Trading, the parent company of MSC (with 54% shareholdings in MSC) has gained more than 80% in less than 3 months.
3. MSC is also dual listed in Singapore. Current share price surged to 71sen. Arbitrage can be applied here.
4. Production curb and output cuts by Top 1 and Top 2 refined tin producers in the world (PT Timah and Yunnan Tin) back in 2019 and first half of 2020 has successfully balanced out the oversupply situation in 2020. Smelters in Yunnan Tin have also taken maintenance downtime to compensate for the shortfall of raw material.
5. Recently in 2021, Myanmar military coup + LME market dwindling tin inventories might have just squeezed the tin supply even further and resulted in tin shortage/deficit. Hence, tin prices could possibly stand above 20k as supply is struggling to meet resurgent demand.
6. Global tin demand is recovering, due to the rising electronic sales as more people stay at home due to the pandemic. With the rollout of 5G networks and EV which require atleadt 25% more chips and hence demand for tin soldering (which is the biggest use of tin) in order to connect components.
7. China's internal supply dynamics seem to be struggling to keep up with current demand, let alone finding sufficient mine resource to meet future soldering demand.
8. Tin remains as the metals most impacted by new technology with its wide application and storage capability in terms of battery storage. Tin improves conductivity and tin foils could be used instead of copper anode in replacing lithium-ion batteries.
9. MSC Tin Mining segment is expected to contributed positively which is attributed by its new mine at Sungai Lembing and increased daily average production at existing mines. Both are currently operating at full capacity.
10. Both Butterworth and Pulau Indah smelters of MSC are in operations (albeit at 25% capacity for new smelter but refurbished with better efficiency) which will increase refined tin output to meet current high demand.
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