RE: Tin prices25 Jan 2018 07:31
Courtesy of Metal bulletin
FOCUS: Tin has strong start to 2018 with
LME stocks at record lows
Tin stocks at London Metal Exchange warehouses have fallen
further since the start of 2018, with a 34% reduction in on-warrant
stocks pushing tin prices to a three-month high.
Total tin stock levels are at 1,780 tonnes as of Wednesday January
24 � their lowest since the 1980s � after a series of cancelations and
deliveries out since January 10.
This is in comparison with the start of 2017, when January saw
2,480 tonnes of tin delivered into LME-listed warehouses.
�Tin prices will be looking to touch back over $21,000 per tonne;
there is enough tightness in the market and stocks look worryingly
low,� a trader said, adding, �There was a period in December where
we thought stocks were recovering slightly � it stayed above 2,300
tonnes constantly � but over the last few days they have dropped
significantly.�
In 2017, tin was the only metal to end the year lower, closing down
5.2% overall. The price has already recovered 4% in 2018 � hitting a
three-month high of $20,800 per tonne on January 22.
�There is a lack of concentrate in some areas, so smelters are
buying LME tin in Port Klang and shipping it in,� a warehousing
source said. �I think this could be the case for the next month or so.�
The decline in stocks was steady throughout 2017, and now in
2018, but current stock levels are in stark contrast to the 39,000
tonnes recorded in August 2002.
After canceled warrants are stripped out, available warrants
stand at just 1,180 tonnes � 83% of which are held in Port Klang. The
rest is spread between other locations in Asia, with no available
stock in Europe or the United States.
Meanwhile, the market tightens.
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