Business conditions for tin grew more difficult in the United States in the week to Tuesday May 5 - largely due to poor demand and the availability of free-floating LME tin warrants - putting pressure on premiums in the country; European markets were similarly subdued although premiums were stable over the past fortnight.
US premiums fall due to absent demand. LME warehouse availability shrinks. European premiums static due to volatile price spreads and risk aversion. Declining demand sees US premiums fall
Tin premiums fell in the US on declining demand for standard-grade material and cheap supply of it in London Metal Exchange warehouses in the country.
Although several sellers said they are concerned about the dwindling supply of low-lead tin because of producer shutdowns during the Covid-19 pandemic, standard-grade material included in Fastmarkets' price specification remains plentiful.
"For standard-grade everyone's just picking off the warrants in LA," one trader said.
LME warehouse data in Los Angeles showed 545 tonnes canceled while there were 85 tonnes canceled in Baltimore on May 5, although some participants said not all of that is making its way to consumers.
Covid-19 has suppressed demand for major end markets...