- Mid-week peak touched $50,500/t
- Spot market thin ahead of Chinese New Year
Tin prices on the London Metal Exchange (LME) gained 2% in the week ended 13 February, supported by improving sentiment as tech companies reaffirmed long-term AI-driven demand, while pre-Chinese New Year thin trading and subdued procurement limited transactions.
Pricing, inventory trends
LME tin prices averaged $48,990/tonne (t) in the week ended 13 February, marking an $930/t or 2% rise w-o-w from the previous week. The week began with prices at $48,625/t, which inched up to around $50,500/t mid-week and then closed at $48,600/t.
Meanwhile, tin inventories at LME-registered warehouses rose 4% to 7,388 t from 7,105 t in the previous week.
Factors impacting prices
LME tin prices edged higher w-o-w, supported by a partial recovery in market sentiment. After a period of decline triggered by the gap between high AI-related expectations and moderate semiconductor performance, representative tech companies reiterated long-term AI-driven demand for computing and solder applications. This helped restore some confidence, leading to a slight consolidation in futures. However, the rebound is largely technical, with limited fundamental support.
On the spot market, approaching the Chinese New Year, logistics are stalled, downstream solder producers are on holiday, and procurement is low, keeping transactions thin. Prices mainly reflect sentiment-driven short-term swings rather than strong buying activity.
Outlook
Tin prices are expected to remain relatively stable in the near term, supported by ongoing AI-driven demand expectations. However, limited spot activity during the Chinese New Year, rising LME inventories, and lack of strong fundamental support may keep price movements muted and largely sentiment-driven.
Leave a Reply