The LME three-month of tin price closed the month of April at the same levels it was at seven months ago.
It seems that tin can’t reach new highs. Although the supply and demand balance 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 again.
Still, while other industrial metals such as copper and aluminum are falling to new lows, tin is holding steady. A metal trending flat while its sector is doing badly is a sign of strength. That means that when the base metal sector recovers, we might finally see tin trending up. Until then, we remain quite neutral on tin and we might not see prices recovering through 2014.
What This Means For Metal Buyers
Tin prices remain flat, incapable of reaching new highs. Until the base metal sector recovers we don’t see any immediate price risk for tin buyers. We still wouldn’t suggest taking long-term positions unless tin breaks through the $25,000 per metric ton barrier.