The degree of volatility in tin prices over the past month makes it appear as thoughthe underlying run up had little to do with fundamentals and a lot more to dowith technical trading. The tightness of the forward curve, and subsequent movesin stocks and warrants, has been the driving force. The scale of the moves whichhave occurred – up to $1,000/tonne a day – are in fact not that unusual in thetin market, due to the limited liquidity. And over the summer months liquiditytends to be reduced even further given the absence of players from the market.Nevertheless, while the cash to three month prices are backwardated to the tuneof $25/tonne, and in fact the entire forward curve is in backwardation, outrightprices have since softened as tin pries step back in line with the broader weaknessin the base metals sector.
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