The LME three-month tin price closed the month of February at $23,500 per metric ton – a 13 percent increase since the beginning of that month. However, in the first week and a half in March, prices seem to be losing momentum again.
It is clear that tin is struggling to reach new highs. Although the supply and demand picture looks tight, it seems to be failing to push prices higher. In January 2012, prices peaked at $25,500 and since then tin hasn’t been able to reach those levels.
It looks clear to us that the depressing picture of the metal sector is not helping tin prices to turn upward and, until that changes or an unpredictable event affects the supply/demand of tin, it is hard to see tin prices well above today’s levels.
What This Means For Metal Buyers
We would expect prices to trade below $24,000 per metric ton through the first half of 2014. If we were in the market to buy tin, we’d probably think twice before taking long-term positions until prices reach new highs.