Tin Faces Historic Squeeze as Electronics Boom Erodes Stockpiles
- Tin spread traded in biggest backwardation since at least 1990
- Inventories approach the lowest level in 30 years on the LME
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The London tin market is facing the biggest supply squeeze in at least three decades as dwindling inventories, robust industrial demand and rising investor interest boost spot prices.
Official London Metal Exchange cash prices on Monday settled at the biggest premium to three-month futures since at least 1990. The spread -- which was at a discount as recently as early December -- has flared out dramatically in recent weeks, in a condition known as backwardation that’s a hallmark feature of a supply squeeze.