Tin Advances to 20-Month High on Dwindling Stockpiles of Metal

  • LME tin stockpiles decline to the lowest since November 2008
  • Copper, aluminum, zinc, lead and nickel also gain in London

Tin climbed to the highest since January 2015, nearing $20,000 a metric ton, as inventories of the metal tracked by the London Metal Exchange continued to fall, hitting the lowest in almost eight years.

Tin for delivery in three months added 0.3 percent to settle at $19,810 a metric ton at 5:50 p.m. in London, after touching $19,950. Prices are up 11 percent in the past two months and 36 percent year-to-date. Stockpiles fell 5.2 percent to 3,460 tons, the lowest since November 2008.

“LME tin stocks have dropped by half since the beginning of June,” analysts at Commerzbank AG said in an e-mailed note on Wednesday. “It was above all the supply side that has helped drive up the tin price in recent months. The reduction of tin stocks on the LME, that has been observed for months now, also points to solid demand for tin.”

The rally in prices may continue, according to Malcolm Freeman, a director of West Malling, England-based brokerage Kingdom Futures Ltd. If the market enters backwardation, a structure where cash prices are higher than futures, prices could reach $22,000 a ton, he said.

In other metals news:

  • Copper, aluminum, zinc, lead and nickel also gained on the LME.
  • On the Comex in New York, copper futures for December delivery rose 0.8 percent to $2.1875 a pound.
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