LME tin price drops 11% but could rebound if tightness continues

A combination of low liquidity, supply constraints that were said to be easing, and a rushed exit from long positions took the three-month price of tin on the London Metal Exchange down by 11% on Thursday August 19, despite its recent and seemingly unstoppable rise. Where will it go from here?

Prior to the fall on Thursday, tin's benchmark futures price had reached an all-time high of $35,955 per tonne a week earlier on August 12. The price had gone up by 70.8% since the start of the year, when it was $21,049 per tonne.
"At the end of the day, tin, like other commodities, is not immune to gravity," Fastmarkets analyst Boris Mikanikrezai said. "The higher it goes, the sharper it falls. Usually, the decline is sharper or quicker than the increase. This time was no different."
This year's global tin market has been defined by extremely low supply coupled with rising demand, with the fundamental balance strained by the effects of the Covid-19 pandemic.

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