Low inventories propel tin prices to record levels

LONDON: Tin prices rocketed to a record high on Friday as inventories in exchange warehouses dwindled and supply issues persisted, although uncertainty regarding China's Evergrande kept a lid on metals prices.

Benchmark tin on the London Metal Exchange rose to a record $36,770 a tonne, and was trading 2.4% higher at $36,310 by 1124 GMT.

Prices for the metal have been fueled by supply disruptions in major producing countries and booming demand for electronics, where the metal is used for soldering to connect components.

"A combination of supply issues and a pick up in demand means stocks are very low," said James Willoughby, an analyst at the International Tin Association (ITA).

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LME tin prices were also tracking record tin prices on the Shanghai Futures Exchange (ShFE), where stocks in warehouses were thin, he said.

The global tin market deficit is expected to rise to 12,700 tonnes in 2022 from 10,200 tonnes this year, the ITA said in June.

Elsewhere, uncertainty around the future of China's debt-laden Evergrande kept a lid on prices as investors fretted over the wider effects of a possible default by the property developer.

This could create "negative headwinds for base metals heavily utilised in construction such as copper and aluminium", StoneX analyst Natalie Scott-Gray said in a note.

Stocks: ShFE tin stockpiles were last at 1,551 tonnes, near their lowest since April 2016. Tin in LME-registered warehouses slipped 25 tonnes to 1,155 tonnes, half of which is booked for delivery.

Other Metals: LME copper rose 0.2% to $9,296 a tonne, aluminium shed 1.2% to $2,913, zinc added 0.5% to $3,107, lead was up 0.6% at $2,134, while nickel was down 1% at $19,160.