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Traders left scratching their heads after 'short squeeze' in tin prices
By Alexander Bueso
Date: Tuesday 16 Feb 2021
LONDON (ShareCast) - (Sharecast News) - Some market participants are asking whether Monday's 'short squeeze' in the price of tin may in part be the result of the suspension of the London Metal Exchange's open-outcry trading floor.
On Monday, tin prices surged by $1,000 per tonne in only one hour due to reduced supply and strong from the semiconductor industry.
The so-called 'spot' price of tin traded at its widest premium - of $4,748 per tonne - versus three-month futures in 30 years on Monday, analysts at SP Angel explained.
Monday's price action was despite the delivery of a 550 tonne cargo of tin at the Port Klang warehouse on 12 February which according to Fastmarkets MB nearly increased the size of stockpiles held there to 1,340 tonnes.
As of 1232 GMT, tin was trading at $24,500 per tonne, up from Monday's close of $23,945.