Tin is a much smaller market but it has attracted its fair share of fund money as investors chase the combination of strong demand profile and structurally challenged supply.
Tin ticks both boxes, particularly the latter. One of the world’s largest mines in Myanmar has been closed since August and shipments from Indonesia, the world’s largest refined metal exporter, have dropped sharply this year.
Supply disruption has already seen London tin rally to a near two-year high of $36,050 per ton in April and it almost matched that this week with a Monday high of $35,355.
However, there is one element missing from the bull picture.
While the price has been rising, global exchange inventory has been rising too. The conflicting signals highlight the disconnect between longer-term bull narrative and current demand reality.
Shanghai surge
Stocks registered with the Shanghai Futures Exchange (ShFE) have grown from…
