GLOBAL TIN WRAP: Europe premium declines on weak demand, LME backwardation; premiums flat elsewhere

A persistent backwardation in tin's forward curve on the London Metal Exchange pressured the tin premium in Europe in the two weeks to Tuesday July 14; meanwhile, premiums in all other regions assessed by Fastmarkets were unchanged.

LME tin price climbs, but backwardation inhibits European tradeUS tin premiums flat despite surging Covid-19 casesExcess Chinese supply outweighs arbitrage opportunitiesBackwardation, persistent inflows pressure Europe premium
In Europe, Fastmarkets assessed the tin 99.9% ingot premium, in-whs Rotterdam at $325-400 per tonne on Tuesday, down by 3.3% at the midpoint from $350-400 per tonne previously.
A persistent backwardation in the metal's benchmark cash/three-month spread on the LME remains the key deterrent to business. That backwardation, alongside weak demand, has been pressuring the premium lower, European industry participants said.
The cash/three-month spread in the LME's tin price closed the official session on Tuesday in a $55-per-tonne backwardation, narrowing from a $70-per-tonne backwardation two weeks earlier.

In addition, LME-registered warehouses in Rotterdam saw fresh inflows last month, with total on-warrant material in the region now at 485 tonnes, which further pressured the metal's in-warehouse...

Immediate trigger for crash was new Fed Chairman pick

Gold stocks slump on metal price decline

Is the gold market starting to turn 'irrationally exuberant'?

Gold stocks explode up as equity markets languish

Gold stocks outpace flat large caps