GLOBAL TIN WRAP: High price, tight spreads limit European trade; US, Shanghai premiums steady

Global tin premiums were flat in the week ended Tuesday July 28, with a rising three-month tin price on the London Metal Exchange and tightening forward spreads being the key deterrents to spot business, while a closed arbitrage window and lack of spot liquidity meant that deals remained rare.

  • US premium holds steady on lack of trades
  • Closed arbitrage window for most of the past two weeks limits buying interest
  • European market mulls poor demand amid price rise.

European premiums hold firm
In Europe, Fastmarkets assessed the tin 99.9% ingot premium, in-whs Rotterdam, at $325-400 per tonne on Tuesday, unchanged from last week’s level.
Physical market participants dealing in tin ingots across Europe maintained that spot demand continued to be almost non-existent, while a climbing three-month LME tin price, and persistent tightness across the metal’s forward curve, further negated prospective business.
LME tin’s three-month price closed at $17,930 per tonne on the afternoon of July 29, falling from an intraday high of $18,160 per tonne, with the metal’s price suggesting a push above the $18,000-per-tonne threshold.

Still, with tin production out of...

Published

Anna Xu

Hassan Butt

Orla O'Sullivan

July 29, 2020

19:18 GMT

Shanghai, New York, London