Tin Price Shows Volatility in October

by on

quka/Adobe Stock

Tin prices decreased last month with high volatility. The drop in prices appears similar to a pattern that took place in February and June.

Benchmark Your Current Metal Price by Grade, Shape and Alloy: See How it Stacks Up

Source: MetalMiner analysis of FastMarkets

Price drops of this magnitude on heavy trading volume usually point to price weakness. However, this year tin prices have recovered from similar price drops.

Before the latest price drop, tin prices increased somewhat dramatically. The price increase  occurred on heavy buying volume, and tin prices looked poised to follow other base metals for a bull run.

Readers might remember that tin outperformed many other base metals last year. Tin prices rallied throughout 2016. Tin prices began to waver only in the beginning of this year, which then pushed tin into more of a sideways trend and/or up-and-down trend.

Source: MetalMiner analysis of FastMarkets

Despite the volatile drops, tin prices appear to keep returning to the same levels throughout this year. Although price drops appear hard to predict, they often appear as buying dips for buying organizations.

What About Industrial Markets?

To understand the industrial metals complex, MetalMiner analyzes the underlying DBB index trend. Both the long- and the short-term trends still point to a bullish market.

Source: MetalMiner analysis of Stockcharts

Even if the DBB index fell in September — caused by price retracement in some base metals, such as copper or nickel — no doubt October saw a big increase. Most base metal prices increased this month, driving the DBB index to higher levels.

The CRB index (commodities) has also traded higher this month, correlating again with the DBB index. We still expect upside movements for most base metals and the DBB index.

Free Sample Report: Our Annual Metal Buying Outlook

What Does This Mean for Buying Organizations?

Tin price drops appear as buying dips. However, given current market trends, buying organizations should be watching closely as to when to commit purchases to reduce risks. At the beginning of October, MetalMiner published a long-term perspective for base metals and steel.

For those who want to reduce risks when committing purchases, MetalMiner analyzes the market each month. Readers can take a free trial now or subscribe to the Monthly Outlook. 

Leave a Comment

Your email address will not be published. Required fields are marked *