Tin prices surged to their highest point in over a year on the London Metal Exchange (LME) on Wednesday, propelled by dwindling stockpiles to their lowest levels in months.
The benchmark three-month tin on the LME climbed 1.1% to $31,485 per metric ton by 0343 GMT, reaching $31,680 per ton earlier in the session – marking the highest level since January 2023.
Simultaneously, the most-traded May tin contract on the Shanghai Futures Exchange rose by 3.6% to 246,810 yuan ($34,134.10) per ton, hitting 249,020 yuan earlier in the session – the highest since June 2022.
LME tin inventories plummeted to 4,285 tons, marking the lowest figure since July 2023 and reflecting a 44% decrease since the start of the year.
The cash tin contract on the LME traded at a $26 per ton premium to the three-month contract (CMSN0-3) on Tuesday, underscoring the tightness in near-term supplies.
Conversely, in China – the world’s largest tin consumer – inventories in warehouses monitored by the SHFE have been accumulating, reaching a record high of 12,823 tons last week according to the latest exchange data.
Analyst Tom Langston from the International Tin Association highlighted divergent market dynamics between China and the global market in a recent note.