Backwardation, persistent inflows pressure Europe premium
- LME tin price climbs, but backwardation inhibits European trade
US tin premiums flat despite surging Covid-19 cases
- Excess Chinese supply outweighs arbitrage opportunities
In Europe, Fastmarkets assessed the tin 99.9% ingot premium, in-whs Rotterdam
at $325-400 per tonne on Tuesday, down by 3.3% at the midpoint from $350-400 per tonne previously.
A persistent backwardation in the metal’s benchmark cash/three-month spread on the LME remains the key deterrent to business. That backwardation, alongside weak demand, has been pressuring the premium lower, European industry participants said.
The cash/three-month spread in the LME’s tin price closed the official session on Tuesday in a $55-per-tonne backwardation, narrowing from a $70-per-tonne backwardation two weeks earlier.
In addition, LME-registered warehouses in Rotterdam saw fresh inflows last month, with total on-warrant material in the region now at 485 tonnes, which further pressured the metal’s in-warehouse...