FX.co ★ Tin Holds Pullback from Record High

Tin futures in the UK have eased to $55,000 per tonne, drifting down from the record high of $56,800 reached on January 26th. This change comes as markets reconsider the sustainability of the metal's speculative rise. Factors contributing to this calm include the Shanghai Futures Exchange's decision to halt trading for selected managers and the rebound of the US dollar. Tin prices had soared by more than 40% this year, fueled by its critical role in soldering for electronic goods and data centers. Consequently, investors have been engaging in lengthy contracts, speculating on the growth of AI technologies. Remarkably, trading volumes in Shanghai surpassed one million tonnes in a single session during the first week of the year. This figure is over twice the annual global physical usage, prompting authorities to caution against "blindly following the trend" and to restrict certain high-frequency trading firms from participating in the market. Meanwhile, global physical supply remains uncertain, particularly after Indonesian President Subianto ordered the closure of 1,000 illegal tin mines in Sumatra, thereby reducing output from the world's second-largest tin supplier.