TIN: Supply stability persists
The LME tin price has stabilised for now near $28,500/tonne following a sharp surge in cash-to-three-month backwardation, peaking at $1,795 last Tuesday. A consistent rise in backwardation revealed unexpectedly low spot liquidity amid prevalent short covering.
It’s noted that a single entity controls 50-79% of LME tin warrants.Supply stability persists, yet remains vulnerable due to depressed demand and elevated interest rates trimming inventories.
The predicted resurgence of Chinese demand in Q4 could stress this balance, as Chinese output, already under strain, braces for the potential withdrawal of Wa State concentrate, accounting for 17% of their feedstock.
