European premiums ease while market finds supply solutions
US participants look to 2019 contracts
China’s closed import window keeps market steady
European premiums soften despite supply constraints
The premium for 99.9% standard-grade tin ingot with 300ppm lead content, in-warehouse, fell to $370-440 per tonne on Tuesday November 6, drifting from a 21-month high despite continued reports of difficulty sourcing supply from Indonesia.
The suspension of key smelter inspector PT Surveyor Indonesia in October caused the European tin premium to reach an almost two-year high of $380-450 per tonne last week.
This was attributed to the increased difficulty in securing tin supply because Indonesian tin exports require clearance through independent analysis prior to trading on the Indonesia Commodity & Derivatives Exchange (ICDX) – a service PT Surveyor provides.
In the absence of spot supply, the market is now negotiating long-term supply solutions, with the reduced spot trading activity causing premiums to...