FOCUS: Tin market mulls liquidity, production incentive after LME price collapse

The three-month London Metal Exchange tin price has fallen by more than 33% since the start of the year, rendering it the laggard among its peers in a market-wide sell-off that has seen commodity prices tumble.

The LME’s smallest market however, which today boasts an open interest count of just 19,041 active positions - a three-month low - has some way to go before price recovery, according to market participants.
Yet this comes despite the metal’s three-month price recording its largest one-day bounce in recent years, climbing more than 5% from a decade-low of $12,715 per tonne on Friday March 20, to reach an intraday high of $14,500 per tonne that afternoon.
The LME three-month tin price closed at $13,250 per tonne on Monday March 23, while average daily trading volumes have averaged more than 400 lots since March 12, while just under 1,000 lots were traded on March 13, the most since July 2019.

LME base metals prices have been subject to stark volatility in the past fortnight, with global investors reducing exposure to risk-assets, including...

Published

Hassan Butt

March 24, 2020

09:35 GMT

London