(Updates prices) LONDON, Jan 25 (Reuters) - Tin rose to its highest since2014 on Monday after a shortfall of the metal used in solder toconnect components in electronic devices pushed up prices for 12straight weeks.
The premium on the London Metal Exchange (LME) for tin thatcan be quickly delivered has ballooned as stockpiles in theexchange's warehouse system near record lows. Benchmark LME tin was up 2.1% at $22,430 a tonne at1715 GMT after reaching $22,600. Prices are up 10% this yearafter rising 18% in 2020.
"There's a mismatch of supply and demand, a shortfall thatwill continue," said independent analyst Robin Bhar.
A price of around $25,000 a tonne is needed to incentivisesupply to meet demand that will expand to feed industries suchas internet infrastructure, consumer electronics, renewablepower and electric vehicles, he said.
"I suspect it goes up very quickly, overshoots thenconsolidates," he said.
DEFICIT: The roughly 350,000 tonne a year tin market willsee a deficit of 2,700 tonnes in 2021 after a 5,200 tonneshortfall in 2020, the International Tin Association said inDecember. DEMAND: Around half of tin demand is for solder. LME STOCKS: Tin inventories in LME-registered warehouseshave fallen to 1,045 tonnes from more than 5,000 tonnes inOctober. SPREAD: Cash tin on the LME was at a $415 a tonne premium tothe three-month contract, indicating tight nearby supplies. Thepremium hit $553 a tonne on Jan. 21, the biggest since 2009. SHFE STOCKS: Inventories in warehouses registered with theShanghai Futures Exchange at 5,084 tonnes have risen from around3,000 tonnes in October, but fell last week. MARKETS: Global equities were mixed, with optimism over a$1.9 trillion U.S. stimulus plan offset by increasing COVID-19cases and delays in vaccine supplies. The U.S. dollarstrengthened. OTHER METALS: LME copper was down 0.2% at $7,984.50a tonne, aluminium rose 1% to $2,015 a tonne, zinc fell 0.4% to $2,705.50, nickel was flat at$18,265 and lead was 0.6% higher at $2,059.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Industrial metals prices ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Peter Hobson. Additional reporting by Mai Nguyen.Editing by Louise Heavens and David Evans)
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