The prevailing backwardation of London Metal Exchange tin prices continued to encourage lower offer prices in Europe and the United States, with premiums falling stateside on November 2, while premiums in Taiwan were steady despite the ongoing destocking of LME inventories.
In-warehouse premiums in Rotterdam and Baltimore drop slightly amid more supply and lower offers
LME stocks at 645 tonnes, the lowest since 1989, with 445 tonnes on-warrant and available to market
Cash-to-three-month backwardation trades between $1,000-2,000 per tonne in the past fortnight
Malaysian Smelting Corporation expected to lift force majeure by end of November, the company told the International Tin Association
Continued tin shortage checks US premiums’ slide
Tin premiums in the United States declined on slightly more supply; some sellers lowered offers to exit punishing positions in a backwardation.
However, the market remains tight, and with LME prices near historic highs and traders’ costs rising, sources said there will be little decline in premiums.
Fastmarkets assessed the tin 99.85% ingot premium, in-whs Baltimore at $2,300-3,450 per tonne on Tuesday November 2, down from $2,500-3,800 per tonne on October 19.