METALS-Supply fears fuel tin's surge to 22-month high - Hindustan Times
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METALS-Supply fears fuel tin's surge to 22-month high

Reuters |
Apr 22, 2024 09:51 PM IST

GLOBAL-METALS/ (UPDATE 5):METALS-Supply fears fuel tin's surge to 22-month high

By Pratima Desai

METALS-Supply fears fuel tin's surge to 22-month high
METALS-Supply fears fuel tin's surge to 22-month high

LONDON, - Tin prices jumped to 22-month highs on Monday as the market fretted over supplies from Indonesia and sliding stocks in warehouses approved by the London Metal Exchange .

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Traders said profit-taking on long tin positions betting on higher prices weighed on the market later in the session. Benchmark tin was down 3.5% at $34,365 a metric ton at 1610 GMT, having earlier peaked at $36,050 for its highest since June 2022.

Concern about exports from Indonesia, which accounts for roughly 18% of global supplies of the soldering metal, and disruptions in Myanmar, the world's second-largest producer of mined tin, are behind the price surge.

"There's a lot of nervousness about supplies, and stocks on the LME have been falling for some time," one tin trader said, adding that expectations of stronger demand also helped to create upward price momentum.

Tin stocks in LME warehouses have nearly halved to 4,190 tons since December and are at their lowest since July last year, suggesting shortages.

Tight supply has also caused the premium on the LME cash tin contract against the three-month contract to jump to levels last seen in July, having stood at a discount earlier this month. The premium was last around $340 a ton.

LME data shows one company holding more than 40% of open interest the number of outstanding contracts due to mature or be rolled over at the next settlement date on long tin futures contracts for May.

Elsewhere, prices of stainless steel ingredient nickel hit seven-month highs at $19,550 a ton on escalating worries over output in top exporter Indonesia, which accounts for more than half of global supplies.

Market talk of Chinese plans to buy nickel for state stockpiles also supported prices on Friday.

Nickel was up 1.2% at $19,570 a ton.

In other metals, copper slid 0.5% to $9,825 a ton, aluminium eased 0.1% to $2,666, zinc retreated 0.8% to $2,828 and lead lost 2.3% to $2,167.

This article was generated from an automated news agency feed without modifications to text.

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