LME tin price falling despite record low stock levels, supply concerns but rebound uncertain [UPDATED]

The dip in tin prices over the past two months reflects technical factors and a drop in semiconductor sales but a rebound is hard to envision despite an largely solid fundamental backdrop.

Weakness in the global semiconductor sector has contributed to an 11% drop in the LME three-month tin price since mid-April - the sharpest fall across the base metals. The three-month price fell just 2.9% in 2018 and subsequently climbed this year to peak at $21,800 per tonne on February 25. But it fell on Friday May 3 to its lowest since January 2 at $19,220 per tonne. Worldwide sales of semiconductors dropped 15.5% in the first quarter of 2019 from the corresponding period of last year, the Semiconductor Industry Association (SIA) said. The three-month average of semiconductor sales was down by 20% from December 2018 to February 2019, while sales in the Americas alone fell by 26.6% over that period, according to data released by the SIA. “Sales in March decreased on a year-to-year basis...

Published

Hassan Butt

May 03, 2019

17:49 GMT

London