Global tin premiums were broadly static in the fortnight to Tuesday June 16, with a narrowing import arbitrage window for shipment into China doing little to sway weak demand conditions, and forward spreads continue to deter business elsewhere.
Shanghai buying appetite reduces amid narrowed arbitrage. US premiums remain flat but weakening demand, widening backwardation expected to hit premiums. European demand continues to struggle amid seasonal lull. Shanghai arbitrage narrows; offers dip with no deals reported
The import arbitrage for bringing tin into China has been falling over the past fortnight, which has deterred buying interest. Sellers reduced their spot offers but failed to attract orders, keeping the premium unchanged.
Tin arbitrage profit was as high as 13,200 yuan ($1,863) per tonne on June 2 but has drifted lower since, felling to a loss of 2,042 yuan per tonne on June 16.
"The spot market was inactive and our target price is $200 per tonne now, but I know no sellers will accept it," a Shanghai-based trader said, noting mediocre demand in China.
"Offers...