Tin's cash/three-month spread came to a new historic backwardation on Wednesday February 10, on the same day that a low dollar index propelled the futures contracts for all London metal Exchange base metals prices - except for zinc - to new 2021 highs.
Tin's benchmark spread widened to a $2,490 per tonne backwardation during trading on Wednesday, the most on record, further proving the ongoing squeeze in the metal's market. It later settled at $1,504 per tonne at the close. "The spread could continue to get very bad very quickly, and this squeeze is legitimate because there is virtually no metal to be found anywhere," one trader said. "If you have been in the tin trade for a while and have seen what this market can do, you would be well advised to pay this $2,500 trade since...