LIVE FUTURES REPORT 17/01: Low LME stocks boost tin price; rest of complex consolidates in quiet morning trading

Base metals prices on the London Metal Exchange were mostly lower during morning trading on Thursday January 17, with tin the only metal to trade in positive territory while the rest of the complex consolidated amid a stronger dollar index.

Tin’s three-month price was recently at $20,635 per tonne, trading more than 12% higher than its 2018 low of $18,145 per tonne. Low LME stocks is a key factor in the metal’s climbing price. Total on-warrant material is now at its lowest point in more than 20 years at just 905 tonnes. Continued delays in tin exports from Indonesia, the world’s second largest global exporter, due to the suspension of major tin inspector PT Surveyor Indonesia are also supporting upward price action. Meanwhile, volatile price action in zinc futures has continued this morning, with its three-month price falling below $2,500 per tonne despite on-warrant stocks remaining low and a fresh cancelation of just under 5,000 tonnes. Tightness in zinc’s forward curve continues to ease this week, with its cash/three-month spread recently in a backwardation of $3 per tonne compared with $77 per tonne backwardation last week. While copper, aluminium and lead...


Hassan Butt

Amy Hinton

January 17, 2019

11:27 GMT