Column: Tin outperforms as broader base metals rally falters

Indonesia Berita Berita

Column: Tin outperforms as broader base metals rally falters
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The London Metal Exchange Index hit a two-year high in May when funds surged into base metals, chasing a narrative of manufacturing recovery, super-charged energy transition demand and constrained supply.

Only one LME base metal has held firm in the broader price retreat. LME tin, trading around $33,250 per ton, is up by 31% on the start of the year, out-performing the others by a wide margin. Fund managers have no cause to sell. The price has been steady and LME stocks of the metal have fallen. Both copper and zinc show signs of tightness in the raw material segment of the supply chain, which helps to explain why they were second and third best performers in the first half of the year.

Against such a backdrop, low treatment charges may translate into slower production growth rather than a fall in refined metal output.Shipments of refined tin from Indonesia, the world’s largest exporter, have been severely disrupted by a backlog in issuing new licences. Outbound volumes slumped to 10,292 tons in January-May from 23,887 tons in the year-earlier period.

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