Tin Trades Sideways, Other Base Metals Pull Back In Early September
MetalMiner | Sep 19, 2017 03:19AM ET
In August, base metals experienced a breathtaking rally in prices.
For example, aluminum and copper increased by 8% and 9%, respectively. Bullish sentiment dominates the overall industrial metals market. A weaker dollar has also accompanied the uptrend in base metals (although the dollar has had less of an impact this year than it has historically).
Why is Tin Trapped?
Contrary to other base metals, tin appears trapped in the $19,000-$21,000 range since the beginning of 2017.
While tin has seen less volatility than other base metals, such as copper, it refuses to give signs of moving either up or down. Tin seems to be trading sideways.
Source: MetalMiner analysis of FastMarkets
Looking at fundamentals, tin appears headed for a 22,000-ton deficit for 2017, according to the International Tin Research Institute (ITRI). This supply shortfall, in theory, should act as a price support to tin.
Trading volumes appear stable, too, and are not yet pointing toward any specific direction.
How Have Other Base Metals Traded So Far?
September has started with a general fall in base metal prices, with copper prices seeing the biggest decline.
Source: MetalMiner analysis of FastMarkets
Aluminum, nickel and zinc prices have also fallen since the beginning of this month. The current downtrend is a price pullback — a normal pattern we see after big price gains.
Buying organizations might want to analyze price movements and trading volumes to commit to purchases.
In bullish markets, like we have now, buying organizations can adapt their buying strategies to time purchases.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.