FX.co ★ Tin Declines from Record High

Tin futures in the UK have dipped below the $50,000 per tonne mark, easing from a record high of $53,460 reached on January 14th as markets re-evaluate the factors driving the recent surge in metal prices. Since the beginning of the year, tin futures in London climbed over 30%, mirroring trends seen in Asian exchanges. The demand for tin, largely due to its use in soldering for datacenters, encouraged investors to take long positions on these contracts as a way to engage in speculative investments in AI technologies. In Shanghai, trading volumes recently surpassed one million tonnes in a single session, which is more than double the annual global physical consumption. This prompted authorities to issue warnings against "blindly following the trend" and to restrict certain high-frequency trading firms from market participation. Globally, the physical supply of tin remains uncertain, particularly after Indonesian President Subianto mandated the closure of 1,000 illegal tin mines in Sumatra, leading to reduced outputs from the world's second-largest supplier.