Low prices, supportive spreads fail to budge European premiums
- Some say weak European demand is weighing on sales, premiums.
- US market illiquid; premiums hold, despite pressure from aggressive new suppliers.
- Weak demand kept Chinese tin premiums unchanged.
In Europe, Fastmarkets assessed the premium for tin 99.9% ingot, in-whs Rotterdam
, at $380-430 per tonne on Tuesday July 16, with the range holding at its lowest level since November 2018.
Despite the static premiums, however, physical tin participants continue to monitor a broadly volatile London Metal Exchange tin market, with the three-month price trading on either side of the key $18,000-per-tonne threshold and down more than 6% month on month.
Forward spreads in LME tin remain supportive of spot business, with the metal’s benchmark cash/three-month spread recently trading in a contango of $39 per tonne, while the nearby cash/August spread was recently in a $45 per tonne contango.